Morning Color

September 25, 2024

Good Wednesday morning!

Yesterday we went straight out of the pot into the fire!!! What I mean is we went from tight balance, with a small intraday range on Monday, right into huge volatility yesterday with bigger ranges, where both upper and lower targets were hit, and the intraday volatility (and opportunity) was huge.

With that being said, the bulls are still in control as evidenced by the DOW & S&P hitting new all time highs again yesterday. It feels like the market is showing less confidence these days but the buyers are still stepping up and yesterdays huge "V shaped" reversal was a perfect example. Don't fight the tape but stay very flexible and fluid while trading.

In the profile pic and key ranges below, you can see the important lines in the sand we need to pay attention to and right now it all starts with 5785, which is the Point of Control. As long as price stays above that level then bulls remain in control and look for prior days high @ 5794 to be taken out then upper targets @ 5815-5820 then 5845 area.

If 5785 gets taken out to the downside, then we will fade back down into prior days range and we could be looking for 5773. Below that look for lower targets @ 5770-5760 then prior days low which is 5754.25. Below that would be 5741 area. We also come some important economic data coming out today which could add more volatility today.

VPOC Update: No new VPOC's were added yesterday above prices and we still 23 below current prices.

TARGETS AND KEY LEVELS TO WATCH:

/ES upside target is: 5815-5820

Key Levels: 5785 POC & 5773 Overnight low 1/2 Back and VAL

downside target is: 5770 - 5760

/NQ upside target is: 20,270 - 20,295

Key Level: 20,169 POC

downside target is : 20,065 - 20,025

/RTY upside target is: 2260 - 2270

downside target is: 2225 - 2220

Economic Data: BUSY TODAY

MBA Mortgage Applications @ 7:00 AM ET