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Good Thursday morning,
Thank You!
To those of you who decided to stay with Market Edge Capital, I am humbled and deeply grateful for your support more than you know. We will work hard every day to give you the edge you need when trading the markets! As you know trading is not easy, but the game plan and narrative provided every day should help you make informed trading decisions.
Yesterday, we saw a huge liquidation break during the overnight session, followed by further moves after some disappointing economic data, with lower targets not only hit but even surpassed!
N.B.: Please remember, the markets can do whatever they want, but being above or below key levels-and then identifying potential targets-is a big step in the right direction! This approach should be taking some of the guesswork out of your trading decisions.
As I was witnessing the flush while preparing the Morning Color report for you yesterday, the downside target levels worked yet again. Now remember, I am doing this research before the bell even rings, so us giving you this data before the bell-that's what I mean when I say the game plan and narrative. As mentioned when I sent out the report.....
"Now, if sellers keep price below 5535, then the edge remains with the bears and look for lower targets of 5515-5500, which price is hitting as I write this, then 5480-5470. 5450 would be next stop!"
Yesterday's low was 5455.50. Not too bad.
Now you would think the bears won the day, but oh no, you would be wrong! At those lower target levels, the "buy the dip" crowd came back into the fray and started driving prices higher, back into the prior day range, then over 5545, then over 1/2 back and VAL, then over the POC at 5589 and prior day's poor high at 5597.25, then right into our upper target zone of 5610 - 5625, as yesterday's high was 5616.50!!!! Wow!
In the profile pic and key targets below, /ES futures are up +57 points right now, and today's key levels will be very important. First, we have prior day's high at 5616.50. If price can stay outside of yesterday's range, then the edge will obviously be with the bulls, so try to keep long exposure on. Any break below 5616.50, then we will look for a move to VAH (Value Area High) at 5564 then the POC at 5536 then lower targets at 5530-5510.
Futures are trading at 5644 at the time of this writing.
VPOC Update: No new VPOC's were added yesterday as the late day buying surged prices higher and hit the POC at 5589. The high yesterday was 5616.50. We still have 7 above and 15 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5690 - 5710
Key Level: 5616.50 then VAH 5564 then POC at 5536
downside target is: 5530 - 5510
/NQ upside target is: 20,100 - 20,150
Key Level: 19,795 Prior High
downside target is : 19,450 - 19,400
/RTY upside target is: 1990 - 2000
downside target is: 1950 - 1940
Economic Data: Very Busy Day ( Red Star)
3-Month Bill Settlement
6-Month Bill Settlement
6-Week Bill Settlement
Challenger Job-Cut Report @ 7:30 AM ET
Jobless Claims @ 8:30 AM ET
PMI Manufacturing Final @ 9:45 AM ET
ISM Manufacturing Index @ 10:00 AM ET
Construction Spending @ 10:00 AM ET
EIA Natural Gas Report @ 10:30 AM ET
Treasury Buyback Announcement @ 11:00 AM ET
3-Month Bill Announcement @ 11:00 AM ET
6-Week Bill Announcement @ 11:00 AM ET
6-Month Bill Announcement @ 11:00 AM ET
4-Week Bill Auction @ 11:30 AM ET
8-Week Bill Auction @ 11:30 AM ET
Treasury Buyback Results @ 2:00 PM ET
Fed Balance Sheet @ 4:30 PM ET
More Color By : Rich Rickus
- /ES - Key Demand $5480-90 with Supply at $5580
Bullish : Sellers trapped above $5480looking to play a break and retest above $5590 long targeting $5575 then $5590
Bearish Buyers trapped below $5470 looking to play short after a break and retest below $5460 targeting $5440 then a break down into $5430
- SPY Key demand at then at $544-545 with Supply above at $553-554
Bullish Sellers trapped above $544 looking to play a break and retest from $545 long targeting $548 then a breakout mid high $550s
Bearish Buyers trapped below $543 after a break and retest below $542 targeting $540s then a breakdown into $539s
- /NQ Key demand at $19250 - 19200 with Supply above at $19600-19650
Bullish Sellers trapped above $19200 looking to play a break and retest above $19250 long targeting $19400s then a breakout back into low $19600’s
Bearish Buyers trapped below $19150 looking to play short from below $19100 then $18900
- QQQ Key Demand at $464-465 with Supply at $475
Bullish Sellers trapped above $464 looking to play a break and retest from $465 targeting $467 then a breakout into low mid $468s
Bearish Buyers trapped below $464 looking to play a break and retest short from $463 targeting $461 then $460s
Have a great day!!
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