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Good Wednesday morning!
Paradise Lost? Or is it paradise found?! Milton aside, the bulls seem to think so! The new administration has certainly hit the ground running and traders and investors around the globe are obviously taking all the new data and policies as very bullish. Just yesterday it was announced that there will be a $500 Billion dollar investment in AI infrastructure and the market tacked on over 530 points. Today, there is more follow through as futures are up big across the board.
As you can see in the profile pic and key target levels below, futures are trading well over Tuesday's high and are already hitting our upside targets one again! Same as yesterday, as long as we stay above Tuesday's high then the edge remains firmly to the buyers. Now there could be a fade lower to balance out the overnight inventory that is 100% net long, so look for a look above and fail at the overnight high (currently @ 6118.75) or if the overnight high does not get hit, then there could be a short below the first one minute low.
If there is more downside follow through, then look for a gap fill to Tuesday's high. It is such a large gap I am NOT saying this definitely will happen so trail your stop down with price and watch for tempo and momentum. The third door by the way is that the market just balances up here with sideways action and back and forth responsive trade. Futures are trading @ 6118 at the time of this writing.
VPOC Update: A new VPOC was added yesterday @ 6033.50, so we had 4 above, but now with this huge gap, we now only have 3 above as 6100 is now below current price. Sorry if it's a bit confusing but with all of this movement, we now have 30 below and 6100 is the closest to the downside and 6136 could be in play today to the upside.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6115 - 6125
Key Levels: 6093.25 Prior High then 6081.75 POC
downside target is: 6050 - 6040
/NQ upside target is: 21,900 - 21,950
Key Level: 21,784 Prior High
downside target is : 21,550 - 21,500
/RTY upside target is: 2355 - 2365
downside target is: 2325 - 2315
Economic Data:
MBA Mortgage Applications @ 7:00 AM ET
Atlanta Fed Business Inflation Expectations @ 10:00 AM ET
Leading Indicators @ 10:00 AM ET
Treasury Buyback Announcement @ 11:00 AM ET
4-Month Bill Auction @ 11:30 AM ET
20-Yr Bond Auction @ 1:00 PM ET
Treasury Buyback Results 2:00 PM ET
More Color....... By Analyst Rich Rickus
Have a great day!
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