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Good Monday morning!
Bears continue their attack this morning after Friday's massacre and futures have a big true gap below Friday's range. There was non-stop selling on Friday, almost right from the open, without the slightest bounce during the day. Traders and investors around the world continued with their risk-off operations, however, today we could finally be seeing an oversold bounce.
In the profile pic and key levels below, there is a lot to take in for today. As you can see the overnight low took out the swing low from March 13th at 5560 and that is a tell that we could be oversold. If price can get back above the VPOC at 5578.50 from that same day, that would be another sign that traders want to cover some of their short positions and buy the dip. A final move up over the overnight high at 5600 would then tell us to look for a gap fill to Friday's low at 5612. Any move to upper targets would occur if shorts get squeezed If sellers keep price below the VPOC then we should see more downside, possibly to lower targets. Futures are trading at 5573 at the time of this writing.
VPOC Update: No new VPOC's added or taken out Friday, however 5578.50 is in play today. At this time we still have 6 above and 22 below but that will definitely change today.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5620 - 5630
Key Levels: 5578.50 VPOC then 5600
downside target is: 5545 - 5535
/NQ upside target is: 19,400 - 19,430
Key Level: 19,242 Overnight 1/2 back
downside target is : 19,125 - 19,100
/RTY upside target is: 2035 - 2045
downside target is: 2010 - 2000
Economic Data: Green Star Event (Very Light Day)
2-Yr Note Settlement
5-Yr Note Settlement
7-Yr Note Settlement
10-Yr TIPS Settlement
20-Yr Bond Settlement
Chicago PMI @ 9:45 AM ET
Dallas Fed Manufacturing Survey @ 10:30 AM ET
3-Month Bill Auction @ 11:30 AM ET
6-Month Bill Auction @ 11:30 AM ET
Farm Prices @ 3:00 PM ET
More Color....... By Analyst Rich Rickus
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/ES - Key Demand $5525 with Supply above $5610
Bullish : Sellers trapped above $5650 looking to play a break and retest above $5655 long targeting $5690 then $5720
Bearish Buyers trapped below $5610 looking to play short after a break and retest below $5600 targeting $5520 then a break down into $5400s
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SPY Key demand at $549 with Supply above that at $556-555
Bullish Sellers trapped above $556 looking to play a break and retest from $557 long targeting $558 then a breakout mid high $560s
Bearish Buyers trapped below $556 after a break and retest below $555 targeting $554s then a breakdown into $553s
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/NQ Key demand at $19160 with Supply above at $19600
Bullish Sellers trapped above $19680 looking to play a break and retest above $19700 long targeting $19850s then a breakout back into low $19900s
Bearish Buyers trapped below $19600 looking to play short from $19550 targeting a breakdown $19400s then $19350s
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QQQ Key Demand at $461 with Supply at $468-467
Bullish Sellers trapped above $468 looking to play a break and retest from $469 targeting $471 then a breakout into low mid $473s
Bearish Buyers trapped below $467 looking to play a break and retest short from $466 targeting $465s then $464s
Have a great day!!
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