Month: October 2022

We have a volatile final quarter of the year ahead of us. This week’s two reports in focus are the ADP employment report on Wednesday at 8:15 a.m. Eastern and the Non-Farm payroll on Friday at 8:20 a.m. Eastern. 

Last week ended red with the S&P 500 (/ES) struggling to hold structure around $3,700 and breaking major levels to the downside. /ES dropped through its previous low of the year at $3,639 and closed at a new low at $3,613. Overnight, /ES created a small gap toward $3,587 putting in an even lower low.

Pay attention to the previous low of the year at $3,639 and the trendline structure we created above. Be cautious overall for upside opportunities; however, if /ES can hold $3,613 and head higher, see if it can break $3,639. From there, my upside target is the gap fill from $3,735 to $3,763.

For the downside, see if we reject the trendline structure and break $3,613. From there, my first target is $3,541. My second target is $3,500. Be mindful that if /ES does not pop, we could dive to those levels quickly. Try not to chase and instead, look for pops for potential short opportunities.

The Nasdaq-100 (/NQ) struggled with its levels last week and broke its previous low of the year at $11,068. It put in a new low of year near $10,979. See if /NQ can retest $11,068. If so, my first target is $10,942 and my second target is at $10,813. See if /NQ will guide the overall market lower.

My main focus to end the week continues to be SPX. Watch the video above to see which key levels and structure I’m noting on /ES.

Tune in to trade SPX and other potential opportunities in the market with me live in the Simpler Day Trading room, try a one-week trial!

Stay Focused!

Can the bulls save the market in a vital spot?

In order for structure to flip bullish, the bulls will need to hold support here.

While structure remains bearish, stay open-minded as the market could easily switch directions. We want to remain neutral and catch the rip if the S&P 500 (SPY) does rally back to $390.

While the market is oversold, it isn’t enough to justify a rally. The market is considered oversold because it is trading over 2 average true range (ATR) moves below the 21 exponential moving average (EMA).

In the video above, we’ll review both perspectives: the path of least resistance to the downside and the potential short-term bullish structure change. We’ll take a look at our SNOW put debit spread opened in the Compounding Growth Mastery on Monday.

We’ll also identify areas to observe this week to see if there’s a greater likelihood for the market to flip bullish, including moving average crossovers as we’ve discussed recently.

Stay Focused!