Daily Plan 05/20
Sellers continue the OTFD on the daily and value shifts lower on ES, not quite on NQ. As mentioned in the last three outlooks, we remain rangebound within the edges of the prior four to five day balance. The same level/zone to the downside continues to hold for now. Begging the question, can the OTFD come to an end and start a short term squeeze? FOMC minutes and NVDA earnings latter half of the session tomorrow.
ES
Main focus for tomorrow remains this 7354 - 60 area, the lower end of the prior balance that buyers continue to hold. Now approaching 7396, yesterday’s VAH so the focus may shift here to start RTH tomorrow. Acceptance beyond this and buyers look to end the OTFD on the daily and target 7412 then 7431. A complete rotation takes this back to 7457 - 64.
Above 7354 - 60, target 7396. Acceptance above and target 7412 and 7431. Continued strength and target 7457 - 64.
Below 7354 - 60, target 7336 and 7299 - 01.
NQ
Main focus for tomorrow remains 28850 - 860 marking a shelf on the composite. Buyers held it for the most part yesterday and tonight after spiking down to the VAL. Now trading towards the VAH and the other shelf on the composite 29070 - 100 which may become the focus if we are to open up around here. Still thinking rotational within these two zones until otherwise. Acceptance above this would likely end the OTFD on the daily and though 29160s is still an important level just above it, we could see a potential squeeze.
Above 28850 - 860, target 29070 - 100. Acceptance above and target 29165. Continued strength above and target 29370.
Below 28850 - 860, target 28670s. Continued strength below and target 28530.
Thank you, Rizzo. Cheers!