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Good Tuesday morning!
Yesterday was a wake up call to traders and investors around the world that things could get messy, very quickly. As I have said before, one day does not make a trend but we have all been put on warning. With the move higher yesterday right from the opening bell, the bears could be in for more disappointment but they are there, trust me, waiting and watching very closely ready to pounce again! Today will all be about whether price gets out of yesterday's range to the upside, stays within range, or breaks down below. The outcome at the closing bell today will give us more information for tomorrow when the FED comes out with their decision on interest rates @ 2:00 PM EST Right now there is a 99% chance of no change.
In the profile pic and key targets below, you can see futures have moved back into prior day range after exploring higher into the gap between yesterday's high and Friday's low. Any price that stays above 6056.50 is the most bullish outcome for today so then look for upper targets if it gets above. Any price action between 6056.50 and 6035.75 would be a neutral battle between buyers and sellers so expect chop. If price accelerates to the downside and the lower POC and 1/2 back from yesterday are taken out below 6026.25, then this would be the most bearish outcome and then lower targets would be in play.
Futures are mixed and overnight inventory is net long this morning, and as mentioned, overnight trade has explored into the gap over prior days high @ 6056.50, however we are trading very close to the high at this time so this is the first important line in the sand for today. Futures are trading @ 6055 at the time of this writing.
VPOC Update: A new VPOC was added above @ 6148.50 because of the huge gap down yesterday. We now have 4 above @ 6081.75, 6100, 6148.50 and 6171 and we still have 31 below.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 6080 - 6090
Key Levels: 6056.50 Prior high then 6035.75 Value Area High
downside target is: 6010 - 6000
/NQ upside target is: 21,450 - 21,475
Key Level: 21,257
downside target is : 21,070 - 21,030
/RTY upside target is: 2315 - 2325
downside target is: 2275 - 2265
Economic Data:
Durable Goods @ 8:30 AM EST
Case Schiller Home Price Index @ 9:00 AM EST
Consumer Confidence @ 10:00 AM EST
More Color....... By Analyst Rich Rickus
Be back soon!
Have a great day!
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