|
Good morning!
Another win for the bulls yesterday as the SPX and NDX hit all time highs once again. Trend is still firmly up and nothing but clear sunny skies ahead for the bulls! Or is it?!
The market is definitely getting overextended and the set up is there for a pullback (or minor correction) so let's see if that happens over the next few days. We have FED Chair Jerome Powell Speaking today at 10:00 AM EST and later this week we get important CPI and PPI data so the catalysts are there for potential selling. I am not saying this is guaranteed to happen but it seems the buyers are getting a bit fatigued.
Please pay attention to the key levels and profile picture below. Any price action that stays above the key zone of 5626.50 to 5624.25 keeps things status quo for the bulls. We already hit our upper targets in the overnight session so lets see if they can be hit again during the regular trading hours session?! By the way, the fact that we already hit those upper targets before the regular session starts at 9:30 AM EST is one sign that buyers got a bit too eager and they need to be saved and that is a recipe for lower.
Futures are back into yesterday's range and overnight inventory is 100% net long. That being said, we are already well off of those overnight highs (and targets) I was just mentioning, so the overnight inventory is already "balancing out". If sellers do persist then look for 5624.25 to be taken out, then prior day low @ 5615.25 then lower targets of 5610-5600.
SNOW: Still holding.
VPOC Update: No new VPOC's again today. Still have 24 VPOC's below current price levels.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5635 - 5640
Key Level: 5626.50 - 5624.25
downside target is: 5610 - 5600 then 5590
/NQ upside target is: 20,725 - 20,755
Key Level: 20,688 - 20,670
downside target is : 20,590 - 20,570
RTY upside target is: 2068 - 2072
downside target is: 2042 - 2038
Economic Data: FED SPEAKERS TODAY!
Michael Barr @ 9:15 AM EST
Jerome Powell @ 10:00 AM EST
Michelle Bowman @ 1:30 PM EST
More Color.......
/ES - Key Demand at $5610 -5618 then below at $5585
1. Sellers trapped above$5610 looking to play long targeting $5625 then
HOD
2. A breakdown below $5605 and falling to reclaim above $5610 and hold I will be looking to play short targeting $5595 then $5579
SPY - Demand $553 pre market then below that at $551 with Supply at $556
1. Sellers trapped above $552 I will look to play long off a break and retest from $553 targeting $555 then $556
2. A breakdown below $551 and holding after a pullback I will look to play short targeting $549 then $548
SPX Key Demand at $5550-5551 with Supply above at $5583 HOD
1. A breakdown below $5550 and holding below after retest I will look to play short targeting $5530
2. A bounce above $5550 I will look to play long targeting $5565 then new HOD
/NQ Demand at $20606-20583 with Supply above at $20750 ( same as
yesterday)
1. Sellers trapped above 20600 looking to play long targeting $20630 then HOD
2. I would only be interested short if buyers are trapped below $20600 off a break and retest targeting $20580
QQQ Key Demand at $491-493 with Supply above at $497
1. Sellers trapped above $491 looking to play long off a break and retest
targeting $494 then 495
2. Buyers trapped below $493 after breaking below $491 and holding looking to playing short after a break and retest targeting new LOD
AMZN Key Demand at $195-196 with Supply above at $201 HOD
1. Sellers trapped after a sell off above $196 looking to play long targeting $198 then $200. Only interested in short if price holds below $195
AMD Key demand GAP at $172-171 with Supply above at $180
1. Looking to play a Gap and GO where price pullback above $173 and
bounces looking to play long targeting $174 then $176
2. I would only be interested if price fell and holds below $170 target $168 or after a new HOD is made with no follow through and pressure on buyers becomes apparent with the tape T&S and volume to the downside.
SOXL Key Demand at $61-62 with Supply above at $66-64
1. Buyers trapped above $62 looking to play long off a break and retest from key demand targeting $64 then $65
TSLA Key Demand at $240 - 239 and $230 with Supply at $259-260
1. Sellers trapped above $240 playing a break and retest long targeting $245
2. Buyers trapped below $238 after a break and retest looking to play short targeting $236 then $233
Have a great day!
| 
