We’re wrapping up earnings this week with a big impact from Snapchat (SNAP). SNAP released earnings on Thursday, and the price dropped over 20% after-hours, making a new low at $11.80.
The S&P 500 (/ES) traded above significant resistance at $3,930 and is breaking through a key zone at $3,978.
If /ES stays above $3,930 and continues higher, look for the next target at $4,056. Earnings season could pull back the market to $3,920, the 50 day simple moving average (SMA). If /ES hits the 50 SMA, our next target is Point of Control (POC) at $3,857.
Keep an eye out on the Nasdaq (/NQ) with technology earnings next week.
In the video above, we’ll look at the reactions earnings is causing on /ES and /NQ, and review setups on SHOP and GOOGL.
In this free webinar, Taylor demonstrates how he uses his Big 3 indicator across multi timeframes, paired with the Big 3 scan, to find A+ setups in a bear market. Not only does he review the “ingredients” that make up this simple but powerful indicator, but he also runs the Big 3 Squeeze scans to create an actionable watchlist. Stay tuned until the end to hear Taylor’s bonus announcement geared to the current market!
The beginning of the earnings season starts this week. There are a few major earnings reports we want to focus on.
On Tuesday, Netflix (NFLX) reports after the close. ASML Holding semiconductor company (ASML) reports Wednesday morning, and Tesla (TSLA) reports on Wednesday afternoon. We’ll end the week with Snapchat (SNAP) reporting earnings after the close on Thursday.
The S&P 500 (/ES) is still at the major structure on the 4-hour chart dating back to March.
/ES failed at $3,900 on Monday and headed toward Point of Control (POC) at $3,828.
If /ES continues to fail, focus on our structure to the downside. Once it breaks $3,828 (POC), our first target will be $3,807 and then $3,741.
With the market being range-bound, it’s setting up the bigger picture.
The Nasdaq (/NQ) ended the session on Monday at $11,911, the daily 21 exponential moving average (EMA). Similar to /ES, /NQ could pop to $12,040, the 50-day simple moving average (SMA), fail through $11,911, and head to its next target of $11,804 (POC).
Here is our focused list:
NVDA — With ASML earnings in mind, if it holds $159, the daily 21 EMA, we want to look for a potential dip buy opportunity toward $168. If it breaks $159, our first target is $152, following $149.
AMZN — Pay attention to its structure. If it holds $113, it could pop back toward the top of the zone at $118, or it could fail through $113 toward the downside structure at $109.
AAPL — If it continues to stay under $152 the first target will be $146. The second target is the daily 21 exponential moving average (EMA) at $143, and the third target at $140.
I’ll be live in the Simpler Day Trading room from Monday to Friday this week to cover the market. Tune in to trade these setups with me live and look for more potential opportunities in the market.
Last week the bulls made progress in comparison to where the market traded on Thursday morning. On Friday, the QQQ traded above the daily 21 exponential moving average (EMA), and the Big 3 Indicator printed green signals on the 15-minute and 5-minute time frames.
The focus next week will be on names with 15-minute squeezes and a bullish Big 3 buy signal. Keep in mind we are in a downtrend, so this depends if the QQQ can hold strong and these squeezes fire long.
In the watchlist video above, we’ll review the overall market and discuss trade ideas in AAPL, TSLA, PEP, and more.
Sign up for my free webinar on Wednesday, July 20th for a full breakdown of my Big 3 indicator, how I scan for setups, and a special bonus announcement.
The bulls made progress on Friday after a big flush early into the Thursday session. This could set the tone for more upside next week. Should the market be able to grind higher, it will need AAPL and AMZN to continue leading the way.
QQQ
QQQ Daily Chart
The above chart of QQQ shows the Friday close above the 21 exponential moving average (EMA) with neutral Big 3 signals from top to bottom. While this isn’t the green light to get long, it’s a step in the right direction for the bulls. The next step is green Big 3 (buy signals) on the lower time frames. If the QQQ trades under the daily 21 EMA, the bulls could quickly lose their progress as they have many times over the last few weeks.
At the moment, AAPL and AMZN are the clear leaders in big technology, like Shaquille O’Neal and Kobe Bryant in basketball. This will have to continue for the overall market to trade higher. Both names have better structure than their peers, trading above their daily 21 EMA’s with Big 3 buy signals on the lower time frames.
AAPL
AAPL 15-Minute Chart
For AAPL, we had a 15-minute squeeze printing our buy signals late Friday afternoon. We used that as our opportunity to buy calls for next week’s expiration. The weekly 21 EMA for AAPL (and previous weekly support) is around $152. We’re looking for this to grind into that level out of this 15-minute squeeze next week.
AMZN
AMZN 5-Minute Chart
Similar to AAPL, AMZN offered a 5-minute squeeze with our buy signals Friday afternoon. This led to a great rally shortly after. So long as AMZN is going to act as leadership here, we’ll be looking for more of these “moments in time” where our favorite combo, squeezes and Big 3 signals, come together to offer great trades.
