Morning Color

November 26, 2024

Good Tuesday morning!!

The large gap higher yesterday filled, meaning price went back down into Friday's range, however, buyers stepped back in and took price right back up, and now this morning, we are moving up yet again! Filling a gap like that is usually bearish, especially on such a large gap higher, but as we have now seen, the selling pressure was short lived and buying pressure resumed just as quickly. On top of that the S&P hit new all time highs intraday touching 6020.75!

Today and tomorrow going into the Thanksgiving holiday, I am expecting price to be very choppy and volatile so please be aware. Many traders have already hit the planes, trains and automobiles ("those aren't pillows!") to head home and extend their vacation, so price will be very fluid and moving quickly. We also have a decent amount of economic data today and tomorrow with several Red Star events so this will also add to the volatility.

Futures are mixed this morning with ES and NQ up, while YM and RTY are lower. Anything inside yesterday's range is pure balance and as you can see in the profile pic and targets below, that is my expectation for today...sailing through some rough choppy seas!

Now of course anything can happen, and obviously I don't have a crystal ball and am not guaranteeing choppy trade, so I set myself up with reference points to show where either strength or weakness would increase letting me know to get on the buy side or sell side!

If price stays between 6024 and 6006.50, the expect responsive, back and forth trade. If price takes out the overnight high and bottom of the spike yesterday @ 6024, then look for upper targets. If price breaks below 6006.50 then target 6000, then the gap fill again to Friday's high @ 5993.50 then lower targets. Futures are trading @ 6020 at the time of this writing.

VPOC Update: There were no VPOC's added yesterday however that 6004 was taken out below (which was above) so we now have 28 below where current price is trading.

TARGETS AND KEY LEVELS TO WATCH:

/ES upside target is: 6030 - 6040

Key Levels: 6006.50 POC

downside target is: 5985 - 5975

/NQ upside target is: 21,020 - 21,050

Key Level: 20,930 1/2 Back then 20,875 POC

downside target is : 20,850 - 20,800

/RTY upside target is: 2460 - 2470

downside target is: 2435 - 2425

Economic Data:

4-Week Bill Settlement

8-Week Bill Settlement