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Good Wednesday morning!
Well the results are in and the market is speaking volumes about the results. The bulls are back in paradise!
Futures are exploding higher on the back of the Trump victory. This is exactly why I mentioned the other day that even though the charts were starting to lean bearish, there was no way I was standing in front of this unknown on the back of the election. With this enormous gap, buyers are excited and shorts are getting crushed and the key thing to watch for today will be: Will price fill the gap? (meaning go back down towards prior days high @ 5822) It is a low probability trade today because of the shock and awe so bulls have a huge advantage heading into the opening bell. With that being said, please check out key levels below.
**Quick Public Service Announcement: Unfortunately I do not have a profile pic as the vendor I use is having technical issues so I truly apologize for the inconvenience.
However, in the key levels below, you can see the important prices to watch as we move forward today so we are still providing you with important data points. With a gap this large, sometimes the market will balance here to "digest" this move. There "should be" a fade lower to balance out the almost 100% net long overnight inventory, but days like this can be difficult for that to happen because some are chasing and shorts have to buy to cover! Futures are trading @ 5935 at the time of this writing.
VPOC Update: A new VPOC was added yesterday below @ 5744 and the one above @ 5878.75 is now below price because of this huge gap! We now have 27 below current price! A new record.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5935 - 5955 then 6000
Key Levels: 5878.75 VPOC Below
downside target is: 5830 - 5800
/NQ upside target is: 20,650 - 20,675 then 20,820
Key Level: 20,525 Overnight 1/2 Back
downside target is : 20,405 - 20,375
/RTY upside target is: 2400 - 2420
downside target is: 2340 - 2320
Economic Data:
FOMC Meeting Begins
MBA Mortgage Applications @ 8:00 AM ET
PMI Composite Final @ 10:45 AM ET
EIA Petroleum Status Report @ 11:30 AM ET
4-Month Bill Auction @ 12:30 PM ET
30-Yr Bond Auction @ 2:00 PM ET
More Color....... By Analyst Rich Rickus
Have a fantastic day!
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