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Good morning!
Well those storm clouds turned into some thunder and lightening off in the distance, especially for the large cap tech space, but it was short lived as usual. Money was temporarily rotating out of those mega caps right into financials, retail, and energy. Some retailers are being bought up like there is no tomorrow (or end in sight) for the excited and euphoric ever spending consumer!!! TGT, DG, DLTR all ripped yesterday. AEO, ANF and JPM also had buyers chasing these names!
Even with the weakness in the large cap tech names, they bought futures and stocks back up yesterday starting late in the session around 3:30 PM EST and shorts were severely disappointed once again. The never ending, deliberate bid remains in the markets at this time.
Futures are now higher this morning however we are inside of prior days range. Most of the recent sell off has been taken back, so whatever slight edge the sellers gained from 3:15 PM EST Monday afternoon to 3:30 PM EST yesterday, has all but been wiped out! Again, a short 24 hour pullback and it's done already!
Overnight inventory is almost 100% net long and climbing after some economic data...ADP Private Payrolls were just reported. 140,000 jobs added vs 150,000 consensus estimates.
In the profile pic below, this tells the story.....anything that remains above 5110 puts the edge right back in the bulls hands and target would be the gap fill to 5136. Then 5150 is next stop. Losing 5110 puts us in a large balance area where there will be big swings back and forth so be careful in that area. Only losing 5065-5060 would change the tone to more bearish!!
WORD OF CAUTION: FED Chair Jerome Powell is speaking in DC today in front of Congress starting at 10:00 AM EST, and also tomorrow at the same time, so this will cause extreme volatility.....trade cautiously or sit on hands.
VPOC update: We have 1 above and 17 untested points of control still below current price.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5100 - 5115
downside target is: 5065 - 5060
/NQ upside target is: 18,050 - 18,075
downside target is : 17,775 - 17,750
/RTY upside target is: 2052 - 2087
downside target is: 2040 - 2038
Economic Data:
ADP Employment Report @ 8:15 AM EST
JOLTS @ 10:00 AM EST
Wholesale Inventories @ 10:00 AM EST
Crude Inventories @ 10:30 AM EST
**Chairman Powell speaks @ 10:00 AM EST and tomorrow @ 10:00 AM EST!
More Color.......
NVDA - Still Bullish. Stock lost $837 but buyers came right back in to take it higher! No short yet.
META - Neutral now. Sideways for the short term.
AAPL- Still Bearish! $166 still target.
AMZN - Short below $177.49....still looking good but stay alert.
As ALWAYS, have your stops in place!!!
Have a great day!
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