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Good Friday morning,
And here's the dump!
Overnight around 8:00 p.m. EST, the futures absolutely fell off a cliff and price is looking to open below prior days low on a true gap lower. There was more tariff news and also a South Korean official stated that the U.S. has demanded that South Korea join an effort to isolate China. These could have been the reason for the sharp liquidation break last evening.
In the profile pic and key levels below, as mentioned, we have a true gap below the prior day's low with overnight inventory that is almost 100% net short. This means there is a high probability for a fade higher to balance out the inventory imbalance. It is NOT guaranteed, but something to watch out for once the bell rings. The trade is, if price takes out the overnight low (6276.75), and then moves back above it, then that is a long trade. If the overnight low is not taken out, then the trade is a long over the first one-minute high, with a stop below the first one-minute low. As ALWAYS, trail stop to breakeven as soon as possible, then trail stop higher if the fade higher does happen. The first target is up too to the prior day's low at 6296. A very important level for today.
If futures stay below the one-minute low and price just balances down here, then this would be edge to the sellers favor the sellers, and we would look for lower targets at 6260–6250. If buyers take price back into prior days range, the prior day's range, then target VAL and half-back at 6313.50, then the POC at 6323.50, then upper targets followed by upper targets.
Futures are currently trading at 6290 at the time of this writing.
VPOC Update: A VPOC was taken out above yesterday at 6,324. We now have zero above current price (although we may add a new one above today since we have such a large gap down this morning), and four below, with 6,271 certainly in play today!
VPOCs
6,271 / 6,146 / 6,091 / 6,050
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6,320 - 6,330
Key Levels: 6,296 Prior Low then 6313.50 VAL & 1/2 Back
downside target is: 6,260 - 6,250
/NQ upside target is: 23,050 - 23,075
Key Level: 22,901.25 Prior Low
downside target is : 22,750 - 22,725
/RTY upside target is: 2,275- 2,280
downside target is: 2,245 - 2,235
Economic Data : Light Day Green Star Event
Baker Hughes Rig Count @ 1:00 PM ET
Treasury Statement @ 2:00 PM ET
More Color By : Rich Rickus
Back at it Monday
Have a great day and a fantastic weekend!
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