After a choppy week to end 2021, the S&P 500 (ES) is starting the new year attempting to fire its two-day squeeze. As of now, momentum is rising but we are continuing to see compression.
The market had a pop to start the week, but we won’t see much change in price action until we break our major inflection points.
The ES has to break $4,800 for the market to break higher and will need to drop below $4,743 to head significantly lower. Until we break either of these points, the chop fest will likely continue.
Here is our focused list:
TSLA — After crushing their delivery numbers on Sunday, this catalyst led TSLA to break $1,200 on Monday. We’re looking for a continuation to $1,250.
NVDA — Last week we saw a pullback to the daily Ichimoku Cloud, but NVDA held its 50-day simple moving average (SMA). It broke the 50-day SMA on Monday with the spike of volume. Look for NVDA to break above the Ichimoku Cloud top at $300 for a move to $310 and $315.
GOOGL — GOOGL is trading in daily, weekly, and two-day squeezes. On Monday, GOOGL traded below the top of the daily Ichimoku at $2,900. If GOOGL can reverse and pop through its wedge, we could see a rally to highs. Once it trades above $2,900, it will start the journey to $2,950.
Stay Focused!