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Good Thursday morning,
Markets started on a lower note yesterday however the bulls bought the dip and took prices higher. We didn't quite hit upper targets however we are balancing up here at the current time. We still have some choppy water and rough seas ahead so expect more of the same today and tomorrow. Volume has been very low and buyers and sellers have been playing a huge game of tug-of-war!
Futures just popped after some economic data and are basically back to flat. We have a poor high yesterday that needs to be repaired so keep an eye on yesterday's high. Poor highs (or poor lows) occur when buyers (or sellers) just run out of steam and pause their operations. The thing with poor highs (or lows) is that they tend to get repaired in the short term....repaired meaning the level gets taken out resuming the trend that brought the markets up (or down) there!! I hope you grasp the concept. It is important to watch as each trading day resumes.
Overnight inventory was almost 100% net short however the buyers have moved well off of overnight lows and we are basically back to the prior days close @ 5212.75 (at the time of this writing) so at the opening bell it will be a jump ball! Any price action that stays above the POC should lead to the poor highs then upper targets. Any move back below the POC should target yesterdays half back and value area low @ 5204 then look for lower targets. The game plan is there to follow!
By the way, SBUX looks very interesting down here after it has recently been decimated and dropped sharply after earnings, so I picked some up yesterday @ $72.85 looking for an oversold bounce. Stop @ $71.75 for now but will trial higher moving to breakeven today.
VPOC Update: No new VPOC's added or taken out yesterday. We still have 2 above and 19 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5230 - 5235
Key Levels: 5208.25 POC
downside target is: 5195 - 5190 then 5185-5180
/NQ upside target is: 18.235 - 18,265
Key Level: 18,180 POC
downside target is : 18,100 - 18,070
/RTY upside target is: 2075- 2080
downside target is: 2050 - 2045
Economic Data: VERY LIGHT TODAY!
Jobless Claims @ 8:30 AM EST
Natural Gas Inventories @ 10:30 AM EST
More Color.......
/ES - Key demand at $5185 - 51200 with Supply above at $5220
1. Sellers trapped above $5188 looking to play long after a break and retest
targeting $5220 supply
2. I would only look top play short if price can break and hold below $5185
SPY - Key Demand $515 then below that at $511-512 with Supply at $519
1. Sellers trapped above $512 after a sell off , break and retest targeting $515
2. I would only like to play short if price holds below $515 after a sell off or a break down below $511 targeting $509
SPX Key Demand at $5165 -5175 with Supply above $5190- 5200
1. A breakout and hold above $5195 as support I will look to play long
targeting previous Supply at $5210
2. A break down below $5165 I will look to play short targeting $5150 - 5142
/NQ Key Demand at $18070 18100 with Supply above at $18190-18200
1. A breakout above $18200 and hold I will look to play long nor is Sellers
become trapped above $18100 I will target key Supply
2. A breakdown below $18000 where demand flips to Supply leaves us room to the downside targeting $18045
QQQ Key demand at $438 then at $436 with Supply above at $441
1. Sellers trapped above $438 after a sell off playing a break and retest from
$439 targeting $441 then $442
2. A breakdown / sell off and hold below $438 I would like to play short
targeting $437.50 then $436.60
AAPL Key Demand $180-181 with Supply above at $185
1. Sellers trapped above $180 after sell off looking to play long off a break
and retest targeting $183 then $184
2. I would only look short if price can break and hold below $179
As ALWAYS, have your stops in place!!!
Have a great trading day!
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