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Good Thursday morning!
Well the storm clouds passed very quickly yesterday as buyers stepped in again and took the market well back above Tuesday's highs. The pullback did not even last 24 hours...so what else is new! The important data points we listed were very relevant as it showed us who was truly in control!
There was a very key "hold" at the important 4970-4965 level and also at the key level of 5000 as that was eventually taken out with authority later in the afternoon!! This is exactly why I post them everyday for you to use in your trading plan. It takes much of the guesswork out of what you have to deal with everyday trading the markets! No matter what your bias is or where you think the markets will go, using these key levels shows you without a shadow of a doubt which direction you want to follow (or avoid if you are on the wrong side!) Please note however that key levels sometimes get "tested" multiple times during the day (above then below then back above then below, etc) so it is at these times where you must remain fluid and be able to change gears and shift sides, back and forth as necessary, until the clear direction is present.
Well right around 2:15 PM EST buy programs kicked in and while it was not another "V" shaped reversal back to the upside, the buyers were absolutely relentless until the closing bell. Game remains back to the upside for now.
The profile pic once again shows the critical levels to watch as they are very important to use today and everyday.
Futures are gapping higher this morning after some economic data was just reported however overnight inventory is mixed. Most bullish scenario is a hold above prior day's high targeting the gap fill @ 5032.50 then 5045-5050. If there is a fade lower to balance out the overnight inventory, first target is yesterday's high at 5020.25. Bears only have a chance if price moves further down towards 5005 and there's about a 20% chance of this happening today at the time of this writing.
Heads up...there is a Red Star event on the economic calendar today @ 9:15 AM EST....Industrial Production. "Red Star" events means they have the ability to move markets sharply in one direction or the other...or both!
As far as value and untested points of control, we took out 5012.75 above us and added another new one below, so we now sit with 1 VPOC above and 16 untested points of control still below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5040 - 5050
downside target is: 5010 - 5000
/NQ upside target is: 18,000 - 18,025
downside target is : 17,900 - 17,875
/RTY upside target is: 2040 - 2045
downside target is: 2015 - 2010
Economic Data Today: Busy!
Jobless Claims @ 8:30 AM EST
Retail Sales @ 8:30 AM EST
Philly Fed @ 8:30 AM EST
**Industrial Production @ 9:15 AM EST Red Star Event
Housing Market Index @ 10:00 AM EST
Business Inventories @ 10:00 AM EST
Natural Gas Inventories @ 10:30 AM EST
FED member Christopher Waller speaks @ 1:15 PM EST
More Color.......
/ES - Key Demand at $4970 - 4980 with Supply at $5030- 5040
- I would like to see buyers trapped at the open after a rally fails to break $5039
holding below $5930 to play short targeting $5012
- Break above $5040 with a break and retest at $5020 looking to play long
SPY - Consolidating inside Supply at $499-501 w/ Demand at $495-497
- Sellers at the open holding above $498 pre market lows looking to play long off a
break and retest targeting $500 first then new HOD
- Sell off at the open looking to play long from $496 targeting $498
- Break and retest below $497 I will look to play short
SPX - Demand at $5015 - 5030 then at $5000 with Supply at $5050-5040
- I would like to see sellers trapped at the open playing long
/NQ - Key Demand at $$17800-17850 with Supply above at $17930-17960
QQQ - Key Demand at $431-432 with Supply above at $434-436
- Sell off at the open holding above $430 looking to play long targeting $433
- Buyers trapped below $436 on a break and retest looking to play short
Also Watching …
AMD - Consolidating inside Supply at $180-178 with Demand below $174-172
- I would like to see sellers trapped at the open holding above $177 to play long
TSLA - Consolidating inside Supply $190-192 with Demand at $187-188
- Sell off at the open looking to play long with price holding above Demand
Have a great day!
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