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Good Wednesday morning,
(*Here's a freebie to everyone because this is so important today!)
Bulls on parade and upside targets were hit! As we mentioned yesterday morning,
".....if price can stay above 5841 and also above the POC at 5854.50, then continue to favor long trades. If prior day's high, overnight high and VAL (Value Area High) get taken out between 5871-5876, then look for upper targets as listed below."
Those upper targets in the /ES at 5890-5920 were hit and 5927 was yesterday's high. Also, in the /NQ, those upper targets were smashed as yesterday's high in the NASDAQ futures was 21,346.50. The edge is still very much to the bulls right now; however, we are getting a bit overextended, so we must stay vigilant as the market could have a sharp liquidation break at any time. I am not saying it will happen today, but we must be very sharp today and through the end of the week! The information below is critical.
Yesterday we had what is called a classic "P" pattern, and you can see it in the profile pic below. This happens when the market is too short and price moves straight up from the opening bell, and then consolidates and builds time and volume in the upper range of the day. It literally looks like the letter P! Now if buyers can stay above the POC at 5916, then the edge remains with the buyers, so stay long and look for upper targets!
Now, if sellers come in and take price below the POC at 5916, then the next very critical area is around 5896! This is where the top of the spike resides, as well as the ONL (Overnight low) and 1/2 back from yesterday's trade. The reason this is so important is because if that level breaks, then there will be very little support until the lower targets at 5870-5860, then we will be looking for 5840-5820! You now know what to look for in today's trade.
Futures are currently trading at 5920 as of this writing.
VPOC Update: Yes, again, another new VPOC was added yesterday at 5854.50. As mentioned, 5905.50 was in play and taken out. As of now, we still have 5 above and now 20 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5940 - 5950
Key Levels: 5916 POC then *5896 Top of spike, ONL & 1/2 Back
downside target is: 5870 - 5860 then 5840 - 5820
/NQ upside target is: 21,500 - 21,550
Key Level: 21,290 POC
downside target is : 21,100 - 21,050
/RTY upside target is: 2120 - 2130
downside target is: 2100 - 2090
Economic Data: Very Light Day
Christopher Waller Speaks @ 5:15 AM ET
MBA Mortgage Applications @ 7:00 AM ET
Philip Jefferson Speaks @ 9:10 AM ET
EIA Petroleum Status Report @ 10:30
More Color By : Rich Rickus
/ES - Key Demand $5830 then below at $5730 with Supply at $5995
Bullish : Sellers trapped above $5830 looking to play a break and retest above $5840 long targeting $5880 then $5900
Bearish Buyers trapped below $5825 looking to play short after a break and retest below $5820 targeting $5805 then a break down into $5780s
SPY Key demand at then at $570-571 with Supply above at $588-586
Bullish Sellers trapped above $571 looking to play a break and retest from $572 long targeting $574 then a breakout mid high $575s
Bearish Buyers trapped below $570 after a break and retest below $569 targeting $567’s then a breakdown into $566’s
/NQ Key demand at $21000 then at $20680 with Supply above at $21500
Bullish Sellers trapped above $21000 looking to play a break and retest above $21050 long targeting $22000 then a breakout back into low $23000’s
Bearish Buyers trapped below $21000 looking to play short from below $20950 targeting $20800 then $20650
QQQ Key Demand at $504 then at $508-510with Supply at 519-520
Bullish Sellers trapped above $510 looking to play a break and retest from $511 targeting $513 then a breakout into low mid $515s
Bearish Buyers trapped below $508 looking to play a break and retest short from $507 targeting $505 then $504s
Have a great day!
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