|
Good morning!
Key levels held and upside targets were hit on Monday as the SPX did not break below some very important zones. As mentioned in Morning Color yesterday....
"Markets notched new all time highs again last week so the bulls still retain control as of now. Any price action in the SPX that stays above the 5331-5341 area will keep the bullish trend intact."
Monday's low in the SPX was 5131.52!!! I think at this point until that level gets broken, then it is status quo and bulls remain in control. SPX closed @ 5360 yesterday.
Today the FED kicks off its two day meeting and they will announce their decision on interest rates tomorrow afternoon @ 2:00 PM EST. As mentioned, there is broad consensus of no change at this time even though the Bank of Canada and the ECB, European Central Bank, recently cut their respective interest rates.
Futures are lower this morning and overnight inventory is about 95% net short, so we might get a fade higher at the opening bell to balance out the overnight inventory. By the way it is not a true gap and we are inside of prior days range.
As you can see in the profile pic below, we are in a 3 day balance area and I have put a box around the yellow shaded value areas. (Please remember......the "value area" is where 70% of yesterdays volume occurred, hence value) This tells us buyers and sellers are in a stalemate with the bulls still winning. Until we break out of balance to the downside we could be in for a choppy, sideways day as traders and investors around the world await the FED's decision tomorrow. Anything between 5353 - 5374 in the /ES is neutral.
SBUX: No change. We are keeping stops and targets in place for now.
VPOC Update: No new VPOC's yesterday. We still have 22 VPOC's below current price levels.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5385 - 5390
Key Levels: 5365-5368 Middle of Balance Area
downside target is: 5350 - 5345
/NQ upside target is: 19,170 - 19,190
Key Level: 19,060 Middle of Balance
downside target is : 19,025 - 19,000
RTY upside target is: 2048 - 2052
downside target is: 2015 - 2010
Economic Data: Very Light Today!
Quarterly Services Survey @ 10:00 AM EST
More Color.......
/ES - Key demand at $5350- 5360 with Supply above at $5375-5370
1. A breakdown below $5355 and holding after a pullback I will look to play short targeting $5360
2. Sellers trapped above $5360 after a break and retest targeting $5370 then
new HOD
SPY - Key Demand $531-532 with Supply above at $537-536
1. Sellers trapped above $532 looking to play long off a break and retest
target $534 then $5335
2. Buyers trapped below $536 after a break and retest looking to play short
targeting $533 then $532
SPX Key Demand at $5330 - 5340 with Supply above at $5375-5370
1. A breakdown below $5370 and retest I will look to play short targeting
$5300
2. A bounce and GO above $5330 I will look to play long targeting $5355 then $5370
/NQ Key Demand at $18970 LOD then at 19015 / Supply at $19120
1. Sellers trapped above $18980 looking to play long targeting $19020
2. A breakdown below $18970 and hold after a pullback I will look to play
short targeting new LOD
QQQ Key Demand at $460 - 461 with Supply above at $466-465
1. Sellers trapped above $462 looking to play long off a break and retest
from $461 targeting $464 then $465 new HOD
2. Buyers trapped below $465 playing short after a break and retest ,
targeting $463-461
AMD Key Demand at $160-159 with Supply above at $165-164
1. Sellers trapped above $160 after a break and retest holds above targeting
$162 then $164
2. Buyers trapped below $166 after HOD fails new , with follow through
looking to play short targeting $164 then $162
As ALWAYS, have your stops & targets in place and have a great day!!!
| 
