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Good Wednesday morning!
Well the bulls did it again.....(wait, didn't I say this yesterday?!?!)
YES I DID! lol The bears came in late Tuesday just like they did on Monday, however the sell off yesterday was much sharper and deeper then Monday's, but just like Monday, the buyers have taken futures back up well off yesterday's and overnight lows. We certainly have some choppy seas to navigate my friends!!!
As I said yesterday as well.....
"We have seen this literally dozens of times over the past 6 months so the buyers are right back in control. When we would have these kinds of liquidation breaks in the past, in any other normal market, we would have some follow through, but as we all know, this is an extremely bullish trend fueled by Artificial Intelligence and Crypto!"
As of this writing, the futures are at new overnight highs so the entire move from that sell off mentioned above, which started @ 3:00 PM EST, has now all been taken back. Once again shorts are completely disappointed!
In the profile pic below, I have highlighted the sell off area and you can see how that is very sharp and very thin, compared to the yellow "value area" and where the POC resides. (Much wider meaning more time & volume!)
This phenomenon happens when there is very emotional buying, or in this case, selling, and the key point is very little time and volume have been spent in this area. This is why this is so important.
If sellers were truly present, we would be in that lower area right now (in the spike), or taking it out to the downside (below 5263), however, you can see that price is way higher (around 5289 at the time of this writing) so traders are disregarding those sellers from yesterday and have taken price back up! Again it is very important to try to read the markets without a bias. Try to stay fluid and accept whatever the market gives you!
As long as we stay above 5270, the buyers are digging in and winning. If they manage to take it above the 5288-5289 area (again, highlighted in the pic below) that would be even more bullish! Then upper targets are in play. If and only if we lose 5270 (and actually stay below!) could this change the trend and tone.
Overnight inventory is 100% net long however we are not gapping outside of Tuesday's range...yet. We may or may not by the time the opening bell rings. Let's see if we just balance (meaning stay inside of yesterday's range), or will we have new "initiating trade" above or below prior day?!
No new VPOC yesterday. We still have two above @ 5319.25 and 5300 and 22 untested points of control below current price. Still a record!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5285 - 5295 then 5300-5306
Key Levels: 5270-5265 Has held last two days.
downside target is: 5260 - 5250 then 5240
/NQ upside target is: 18,565 - 18,585
Key Level: 18,530 Top of spike..single prints
downside target is : 18,395 - 18,375
/RTY upside target is: 2111 - 2115
downside target is: 2080 - 2076
Economic Data: Very Light today
Crude Inventories @ 10:30 PM EST
More Color.......
/ES - Key area of Demand at $5260-5275 then at $5225-5240
- Supply above at $5322.75 - 5310 (5m) HOD - I would only like to play short if there is a break and retest below $5260 targeting $5248 then $5240
- Sellers at the open fail to break below $5270 looking to play long off a break and retest targeting $5290
SPY - Buying overnight- Key Demand $518-519 with Supply above at $523-524 HOD
- I would only like to play short if price can break below $518 target $516.80
- Watching for a break and retest above $519 to play long targeting $521
SPX - Key Demand at $5170-51 60 with Supply Gap Down at $5235-5220
- If buyers fail to reclaim above $5200 at the open I will look to play short. A breakout above and I will look for a break and retest above $5220 to play long.
- Sell off at the open where Bears are trapped above $5180 looking to play long
/NQ - Key Demand at $18400-18450 with Supply above at $18710 - 18660 then from yesterday Supply formed between $1600-28630
- Ideally want to play long after a sell off at key demand playing a break and retest from $18450 targeting $18475 then $18500
- I would only like to play short if buyers fail to break back above $18500 after a sell off looking to play a break and retest below targeting $18425
QQQ - Key Demand at $442 from yesterday with Supply at $447-446
- I would like to play long from $444 targeting $445 first then $446
- I would only like to scalp short if price can break and hold below $444 and hold and resistance where Demand would flip to Supply
AMD Balanced range inside key demand at $172-174 with Supply above at $185
- I would on like to play short if price can break below $172 targeting $168
AAPL Key area of demand at $165-167 with Supply above at $174 then $178
- Sellers trapped at the open above $168 looking to play long , not interest in short
As ALWAYS, have your stops in place!!!
Have a great day!
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