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Good Tuesday morning,
Could it be time to lock in gains and protect profits? Maybe—but as of now, the trend is still in favor of the buyers, however, we are seeing some signs of liquidation, so there could be more follow-through soon. As far as a pullback, please know I mean in the short term. The way the market put in a "poor high" yesterday tells me that the "up" move is not over yet, but it doesn't mean we will get there today or tomorrow. A short-term liquidation break to balance out the net long inventory could be in play.
📊 In the profile pic and key levels below, you can see the poor high as evidenced by the lack of excess (no spike on top). This means the auction ended early. There still needs to be a move to "repair" that poor high, but like I said, it doesn't mean it has to happen today. Futures cut the prior day's low but have since recovered and are now trading back within the prior day's range. The first key level will be price getting back above 6,352, which is VAL (Value Area Low), and then above 6,357, which is the half-back from yesterday. If this happens, then the POC and upper targets would be in play.
If sellers keep price below 6,352, then the prior low at 6,341 and overnight low at 6,335.00 would be in play, as this is also the exact price of the new VPOC that was put in yesterday. Please note: for a VPOC to be taken out, it has to be traded through during regular trading hours. Any move below lower targets could see further liquidation to 6,300–6,290.
Futures are currently trading at 6,349 at the time of this writing.
🧭 VPOC Update: Another new VPOC was added below yesterday at 6,335.00 so we now have five below current price and none above.
Current VPOCs:
- 6,335.00
- 6,283.50
- 6,146.00
- 6,091.00
- 6,050.00
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6,365 - 6,375
Key Levels: 6,353 ON High then 6,357 1/2 Back
downside target is: 6,330 - 6,320 then 6,300 - 6,290
/NQ upside target is: 23,400 - 23,425
Key Level: 23,365 VAL & ON High
downside target is : 23,225 - 23,200
/RTY upside target is: 2,260 - 2,265
downside target is: 2,225 - 2,220
Economic Data : Red Star Event
Jerome Powell Speaks @ 8:30 AM ET
Richmond Fed Manufacturing Index @ 10:00 AM ET
Treasury Buyback Announcement (Preliminary) @ 11:00 AM ET
More Color By : Rich Rickus
1. /ES : Key Demand $6335 and $6310 then Supply above at $6360
- Bullish : Sellers trapped above $6335 looking to play a break and retest above $6345 long targeting $6366 then $6385
- Bearish Buyers trapped below 6330 looking to play short after a break and retest below $6325 targeting $6305 then a break down into $6285
2. SPY : Key demand at $626-627 with Supply above at $630
- Bullish Sellers trapped above $627 looking to play a break and retest from $628 long targeting $630 then a breakout into high $631
- Bearish Buyers trapped below $626 after a break and retest below $625 targeting $623 then a breakdown into $622
3. /NQ : Key demand at $23225 with Supply above at $23425
- Bullish Sellers trapped above $23225 looking to play a break and retest above $23250 long targeting $23400 then a breakout back into low $23500’s
- Bearish Buyers trapped below $23200 looking to play short from below $23100 targeting $22900
4. QQQ : Key Demand at $560 with Supply at $563 -564
- Bullish Sellers trapped above $560 looking to play a break and retest from $561 targeting $563 then a breakout into high $564s
- Bearish Buyers trapped below $559 looking to play a break and retest below targeting $557 then $556
Have a great day!
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