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Good Monday morning,
Do we continue to roll the dice and bet on higher prices, or is it time to take some chips off the table? The markets continue to show incredible strength, and overnight futures gapped to new all-time highs—yes, once again! All the signs say press the bet, but I have to say it is getting harder and harder to keep buying up at these levels. It’s like tasting bad medicine your mom gave you as a kid—you just have to hold your nose and take it! The beautiful thing about the tape today is that we have some key data points that will tell us which side to be on.
📊 In the profile pic and key levels below, you can see the overnight session is trading above Friday's high at 6,431, so this is the first key level for today. If buyers can keep price above 6,431, then the edge remains with the bulls. The overnight range has come very close to our upper targets of 6,460–6,470, so let's see if the domestic traders here in the U.S. can push and test those levels again.
Asian and European traders are not the same as those here in the United States, although we all see the same data. Question is: are we all on the same page? For now, we have to continue to press the bet, and only with a loss of 6,431 might we then see further liquidation. If Friday's high is lost, then the POC at 6,426 would be next, then the 6,417 area, then our lower targets of 6,410–6,400.
Futures are currently trading at 6,440 at the time of this writing.
🧭 VPOC Update: Yes, another new VPOC was added below at 6,401.50. We now have seven VPOC's all below current price and currently, there are none above.
Current VPOCs:
- 6,401.50
- 6,389.50
- 6,336.00
- 6,283.50
- 6,146.00
- 6,091.00
- 6,050.00
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6,460 - 6,470
Key Levels: 6,431 Poor high then 6,426 POC
downside target is: 6,410 - 6,400
/NQ upside target is: 23,600 - 23,625
Key Level: 23,476 Prior High
downside target is : 23,400 - 23,380
/RTY upside target is: 2,295 - 2,300
downside target is: 2,265 - 2,260
Economic Data : Light Day
Dallas FED Manufacturing Survey @ 10:30 AM ET
More Color By : Rich Rickus
Have a great day!
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