Morning Color

September 27, 2024

Good Friday morning!

Another new all time high in the S&P confirms that the current trend is still intact and buyers are rotating from one sector to another chasing the hot stocks and groups. It's not all about large cap tech and the FANGMANN stocks anymore like it used to be. And when you have this kind of rotation and continuous buying, it will be hard for the markets to make any significant liquidation break and actually hold lower. Even yesterday was a perfect example.

After a large gap higher and overnight inventory 100% net long, there was a significant sell off and fade lower where key levels were taken out to the downside and lower targets were hit. HOWEVER, buyers came back in and we closed well off of the lows of the day. A more bearish market will hold those lows or at least be much closer when the final bell rings.

Futures are higher again this morning, however, we are still inside of prior days range. The key breakout level is listed in the profile pic and as long as price stays above 5798 then bulls are in control. Price action above the POC (Point of Control) 5802.50 and value area high 5808 indicates an even a more bullish posture from market participants. Only a loss of 5789 then 5780 would change the current tone.

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

TARGETS AND KEY LEVELS TO WATCH:

/ES upside target is: 5825 - 5830

Key Levels: 5808 Value area High @ 580250 POC

downside target is: 5790 - 5780

/NQ upside target is: 20,475 - 20,495

Key Level: 20,340 POC

downside target is : 20,240 - 20,210

/RTY upside target is: 2250 - 2255

downside target is: 2215 - 2210

Economic Data:

International Trade in Goods (Advance) @8:30 AM ET