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Good morning!
To say we've had some rough and choppy seas recently is an understatement! The intraday volatility and movement has been epic and while it is good for some traders, others may find it very difficult to navigate!
As you can see in the profile picture below, we are in a very large balance area so the market has been going sideways now for several days. It will break out of this balance at some point but one is never 100% sure exactly when.
At this point, bulls are still in control as I have been talking about looking at the very key levels in the SPX and NDX. The SPX held 5440 and the NDX is well back above 19,580, so this is proof that the longer term trend is still in tact.
While there has been some decent liquidation breaks (or pullbacks), the market is still riding on the backs of the Mag 7, so as long as traders and investors see money continue to pour into these names, then there will be no fear or worry. It is truly incredible as I have been doing this a long time but we are in a very complacent time in the markets. There is nothing to worry about until of course there is something to worry about!
Futures are lower across the board and overnight inventory is 100% net short (as measured vs the settlement), however, we are already way off of the overnight lows. We are inside of yesterdays range and the important thing to watch will be the key levels listed.
If price action stays above the 5533-5531 area, which is the POC & 1/2 back, then look for upper targets. Anything below we would be looking for lower targets. If you find the markets just chopping back and forth above and below that key area, then we could be in for another balance day. There is a bullish scenario...higher, and a bearish scenario...lower, but DON'T forget door #3...a sideways or balance scenario!!! Very rarely do people put that in their game plan for the trading day.
TSLA: Another good day yesterday as the stock was up over $9.00 so we may have the stock called away from us on Friday. This is not a bad thing!
SNOW: Bought our first piece yesterday @ $125.95 and sold some downside $120 puts for this Friday.
VPOC Update: No new VPOC's so we still have 24 VPOC's below current price levels. This still tells us the market is "balancing" and going sideways for now.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5550 - 5560
Key Level: 5533-5531 POC & 1/2 Back
downside target is: 5520 - 5515
/NQ upside target is: 20,125 - 20,145
Key Level: 19,970 POC & 1/2 Back
downside target is : 19,945 - 19,925
RTY upside target is: 2053 - 2057
downside target is: 2027 - 2024
Economic Data: BUSY TODAY
Durable Goods @ 8:30 AM EST
Gross Domestic Product @ 8:30 AM EST
International Trade in Goods @ 8:30 AM EST
Jobless Claims @ 8:30 AM EST
Pending Home Sales @ 10:00 AM EST
Natural Gas Inventories @ 10:30 AM EST
More Color.......
As ALWAYS, have your stops & targets in place and have a great day!!!
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