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Good Wednesday morning,
Once again, the buyers took back control of a market that tried to get lower, but just couldn't make it stick! As we said yesterday, it was a coin toss, and the bulls won the flip! Aside from buyers defending the early morning lows, there was a late day surge that took out the latest VPOC at 6,483.75, and shorts had to scramble to cover once again. The bears just can't catch a break!
That being said, this is a market where you can really trust nothing—long or short, it doesn’t matter. Expect reversals and chop for the next few days, basically until the Dukes return from the Hampton's after Labor Day. Oh yeah, Monday is a holiday—just a quick reminder!
📊 In the profile pic and key levels below, futures have turned negative and there has been a pretty hard liquidation break that started at 8:20 a.m EST. I can't find any news for the selloff, but like I just said, trust nothing!
There are many data points to watch for today so please pay close attention to all the levels as they will let you know whether to get on the long side of the market or short side. For those that can be fluid and stay nimble, there will be opportunities for both! First key levels are the prior high at 6,486.50 and VAH (Value Area High) at 6,472.50. Any price action in between these levels is a total guess. Expect choppy and responsive trade as bulls and bears try to wrangle for control. Only taking out either level would show more strength (or weakness) so use the additional data points as direction to key targets!
Futures are currently trading at 6,481 at the time of this writing.
🧭 VPOC Update: That brand new VPOC at 6,483.75 was taken out yesterday on a late day surge, so we now none above and four below the current price.
Current VPOCs:
- 6,264.50
- 6,146.00
- 6,091.00
- 6,050.00
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6,500 - 6,510
Key Levels: 6,486.50 Prior High then 6,478 ON Low
downside target is: 6,.460 - 6,450
/NQ upside target is: 23,675 - 23,700
Key Level: 23,550.50 VAH
downside target is : 23,475 - 23,450
/RTY upside target is: 2,375 - 2,380
downside target is: 2,345 - 2,340
Economic Data : Light Day
EIA Petroleum Status Report @ 10:30 am
More Color By : Rich Rickus
1. / ES - Key Demand $6425-20 Supply above at $6490
Bullish : Sellers trapped above $6430 looking to play a break and retest above $6435 long targeting $6455 then $6488
Bearish Buyers trapped below $6420 looking to play short after a break and retest below $6415 targeting $6395 then a break down into $6355
2. SPY Key demand at $642 with Supply above at $646
Bullish Sellers trapped above $642 looking to play a break and retest from $643 long targeting $645 then a breakout into high $646
Bearish Buyers trapped below $641 after a break and retest below $640 targeting $638 then a breakdown into $637
3. /NQ Key demand at $23380- 23400 with Supply above at $23700
Bullish Sellers trapped above $23700 looking to play a break and retest above $23724 long targeting $23850 then a breakout back into low $24100
Bearish Buyers trapped below $23300 looking to play short from below $2375 targeting $23100
4. QQQ Key Demand at $569 with Supply at $573
Bullish Sellers trapped above $568 looking to play a break and retest from $569 targeting $573 then a breakout into high $575
Bearish Buyers trapped below $568 looking to play a break and retest below targeting $565 then $564
Have a great day!
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