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Good Tuesday morning,
The bounce yesterday was epic as traders and investors around the world spoke volumes about how they felt following the U.S debt downgrade by Moody's late Friday afternoon! A total non-event! Buyers stepped in right from the open, the fade setup over the first one minute high trade worked like a charm, and upper targets were nailed! Today, it will be all about some very key levels I've listed below!
In the profile pic and key levels below, you can see that there is a spike in yesterday's profile, and this means that price basically went straight up from the open. Not much time and volume were spent on the way up, as that was built where the value area (yellow shaded area on chart) shows us where all the heavy lifting was done. All the time and volume were spent above 5947, so this is a VERY KEY level for today. That marks the top of the spike. Price is also above half back and VAL (Value Area Low) and this also tells us buyers are in control. If the price stays above 5957, then gets above the POC (Point of Control) at 5969, then this is the most bullish scenario, so look for upper targets at 5990-6000. If buyers become more aggressive and take out 6000, then look for 6025-6035
Now, if sellers take price below 5957, then 5950 half back, then 5947 top of spike, then 5940, look for the next set of lower targets at 5920-5910.
Futures are currently trading at 5965 as of this writing.
VPOC Update: No new VPOC's were added or taken out yesterday as buyers stepped up in a big way and rallied all the way back up to the POC. We still have 5 above and 20 below. Closest one above is 6006 and below 5854.50.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5990 - 6000
Key Levels: 5947 Top of Spike
downside target is: 5950 - 5940 then 5920-5910
/NQ upside target is: 21,600 - 21,650
Key Level: 21,408 Value Area Low
downside target is : 21,300 - 21,270
/RTY upside target is: 2115 - 2125
downside target is: 2100 - 2090
Economic Data: Very Light
Thomas Barkin Speaks @ 9:00 AM ET
Raphael Bostic Speaks @ 9:00 AM ET
Treasury Buyback Announcement (Preliminary)11:00 AM ET
More Color By : Rich Rickus
- /ES - Key Demand $5815 - 5805 then at $5720 with Supply at 5997
Bullish : Sellers trapped above $5730 looking to play a break and retest above $5740 long targeting $5780 then $5800
Bearish Buyers trapped below $56003 looking to play short after a break and retest below $5595 targeting $5560 then a break down into $5550s
- SPY Key demand at then at $560-561 with Supply above at $570
Bullish Sellers trapped above $561 looking to play a break and retest from $562 long targeting $564 then a breakout mid high $565s
Bearish Buyers trapped below $560 after a break and retest below $559 targeting $557’s then a breakdown into $556’s
- /NQ Key demand at $19900 with Supply above at $20276
Bullish Sellers trapped above $19800 looking to play a break and retest above $19850 long targeting $19900s then a breakout back into low $20100’s
Bearish Buyers trapped below $19900 looking to play short from below $19850 targeting $19700 then $19650
- QQQ Key Demand at $476-478 then at $484 with Supply at $492
Bullish Sellers trapped above $484 looking to play a break and retest from $485 targeting $487 then a breakout into low mid $488’s
Have a great day!
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