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Good Monday morning,
I hope you had a nice weekend! Back to business.
Is it nothing but bright, sunny skies ahead for the bulls?!?!
After breaking to highs on Friday that had not been seen since February 24th, the markets are still holding onto massive gains from the April 7th low. Yes, over a 24% gain from that low of 4835. We are now less than 3% away from all time highs, so the question now will be: Are the buyers confident enough to continue to put capital to work, and achieve another milestone, or have we come too far too fast?
There is no doubt about it, that the bulls remain in control, and the only thing that would change this current edge is if price dropped and closed below 5950 in the S&P cash! By the way, this is only the first potential sign that sellers are re-entering the markets in any meaningful fashion. Only a confirmed close below 5860 would then validate a change in tone and trend! Please keep an eye on these levels in the S&P. This is obviously a broad look at the markets through a telescope, but now let's look under the microscope for today.
In the profile pic and key levels below, if buyers can keep prices above 6013.75, then the edge remains with the buyers, and our upper targets could be in play at 6030 - 6040. If sellers take price below 6013.75, then the next very key range is 6004 - 6003. This is half-back and VAL (Value Area Low). IF this range is lost, then sellers look to take price down to re-test the overnight low of 5992.50, then Friday's low of 5984.50. Further selling could see our lower targets of 5980 - 5970.
Futures are currently trading at 6016.50 at the time of this writing.
VPOC Update: A new VPOC was added below at 5970 as Friday's low was 5984.50. We still have 4 above and now 23 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6030 - 6040
Key Levels: 6013.75 POC then 6004 - 6003 1/2 Back & VAL
downside target is: 5980 - 5970
/NQ upside target is: 21,900 - 21,950
Key Level: 21,815 POC
downside target is : 21,600 - 21,550
/RTY upside target is: 2140 - 2150
downside target is: 2120 - 2110
Economic Data : Very Very Light Day
Wholesale Inventories (Preliminary) @ 10:00 AM ET
Treasury Buyback Announcement (Preliminary) @ 11:00 AM ET
3-Month Bill Auction @ 11:30 AM ET
6-Month Bill Auction @ 11:30 AM ET
More Color By : Rich Rickus
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/ES - Key Demand $5900-5905 with Supply above at $6025
Bullish : Sellers trapped above $5900 looking to play a break and retest above $5905 long targeting $6015 then $6028
Bearish Buyers trapped below $5900 looking to play short after a break and retest below $5890 targeting $5825 then a break down into $5700s
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SPY - Key demand at then at $588-589 with Supply above at $600
Bullish Sellers trapped above $589 looking to play a break and retest from $590 long targeting $593 then a breakout mid high $595s
Bearish Buyers trapped below $589 after a break and retest below $588 targeting $587’s then a breakdown into $586’s
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/NQ - Key demand at $21390 then at $21600 with Supply above at $21935-21900
Bullish Sellers trapped above $21600 looking to play a break and retest above $21645 long targeting $21700 then a breakout back into low $21800s
Bearish Buyers trapped below $21435 looking to play short from below $21390 targeting $21200 then $21100s
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QQQ Key Demand at $521-522 with Supply at $533-534
Bullish Sellers trapped above $524 looking to play a break and retest from $525 targeting $526 then a breakout into low mid $528’s
Bearish Buyers trapped below $521 looking to play a break and retest short from $520 targeting $519 then $516
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AMD - Key Demand at $112 with Supply above at $120
Bullish - Sellers trapped above $113 after a break and retest from $114 looking to play LONG targeting $116 then a breakout into $118s
Bearish - Buyers trapped below $112 after a break and retest from $111 to play short targeting $109 then breakdown into $107s
Have a great trading day ahead!
PS Still having issues with the excel spreadsheet below, but at least all the data is there for you to use. Stay tuned.
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