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Good morning!
New all time highs Wednesday as the S&P cracked 5280 and as we said in yesterday's report....
"The S&P also closed over 5280 so that tells us that the trend into the remainder of the week is higher. Remember nothing is guaranteed but the odds favor it!!"
We also mentioned.....
"This current environment is very bullish and people keep chasing stocks higher so it might be a gap and go or a gap and hold at the very least."
For now I think it is very simple......buyers need to defend the current move because if not, there could be a liquidation break as many people are all eyeing the exit doors at the same time! As long as prices hold then the buyers will remain calm and hold their positions. However, if they start to see their buddies selling to lock in these big gains, then they will follow as well. It is now getting into being a "musical chairs" type of market. Who is going to be left holding the bag when the music stops?!?!
Futures are relatively flat this morning and overnight inventory is mixed. In the profile pic below, the battle line is 5363 - 5359.50 As long as price stays above those levels then buyers remain. Any loss of those levels could see a liquidation break.
SBUX: Terrible price action yesterday in a very bullish tape. No change and we are keeping stops and targets in place.
VPOC Update: As I mentioned yesterday, the VPOC @ 5325 was in play and it was taken out! There was also another new added below @ 5283.50 so we now have 22 VPOC's below current price levels.
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5390 - 5400
Key Levels: 5363 - 5359.50 Overnight low and POC
downside target is: 5340 - 5335
/NQ upside target is: 19,160 - 19,180
Key Level: 19,055 - 19,035 Overnight low and POC
downside target is : 18,990 - 18,970
RTY upside target is: 2079 - 2087
downside target is: 2052 - 2049
Economic Data:
Jobless Claims @ 8:30 AM EST
International Trade @ 8:30 AM EST
Productivity and Costs @ 8:30 AM EST
Natural Gas Inventories @ 10:30 AM EST
More Color.......
/ES - Key demand at $5305-5310 then below at $5266-46
1. A breakdown below $5330 and holding after a pullback I will look to play short targeting $5310
2. Sellers trapped above $5310 after a sell off looking to play long off a break and retest targeting $5340 then $5350
3. Buyers trapped below $3505 after a breakout and no follow through ,
looking to play short targeting $5285
SPY - Key Demand $529-530 then below at $525
1. Sellers trapped above $529 looking to play long off a break and retest
target $531 then $532
2. Buyers trapped below $528 after a break and retest looking to play short
targeting $525
SPX Key Supply flipped to demand $5340-5320 then below at $5300
1. Key level for me will be watching how buyers react at $5320. A breakdown below and retest I will look to play short targeting $5295
2. A bounce and GO I will look to play long targeting $5330
/NQ Consolidating Supply flipped to demand at $18700 then $18850
1. Sellers trapped above $18850 looking to play long targeting $19000
2. A breakdown below $18930 and hold after a pullback I will look to play
short targeting $18870
QQQ Key Demand at $460-61 then below that at $457-456
1. Sellers trapped above $460 looking to play long off a break and retest
from $461 targeting $462.50 then $463
2. Sellers trapped at $460 playing short after a bounce below and hold ,
targeting $458 then $456
AMD Supply flipped to Demand $165 with Supply above at $170-171
1. Sellers trapped above $163 looking to play long from $164 target $166 -67
2. Buyers trapped after a breakdown below $164 looking to play short off a
retest from $163 targeting $162 then $160
MSFT Key Supply at $425 HOD $426 with Demand below at $416-418
1. Buyers trapped below $426 with no follow through after New HOD looking to play short targeting $424 then 421
2. Sell off where sellers are trapped above $424 or $417 looking to play long
As ALWAYS, have your stops & targets in place and have a great day!!!
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