With the market finally giving us a much needed pullback, it’s time to step back and analyze our next opportunities! We’ve been waiting for this to happen for a while now, so let’s take a look at where the markets are now.
We’ve seen the markets rally higher every time prices hit the daily Ichimoku Cloud, and now we have finally seen them gap down. The question is, how low will they drop? The major indices can be used as a compass to determine direction, looking at the S&P 500 (ES), Dow Jones Industrial Average (YM), and the Nasdaq Composite (NQ). The YM continues to drag the markets down as the lagging sector, and investors shifted their focus on the NQ.
We can use the intraday and 4 hour clouds as a guide to see if prices will continue to move lower or if we continue to the mean. We can use Keltner channels as well in order to establish when we should buy the dip. Now that the markets popped and reset, it’s a patience game to see where we will go next. Focus on the key zone around Tuesday and Wednesday’s lows for a sign to rise to an all time high or revert back down to the daily mean.
Keep a tight focus on VIX, ROKU, NVDA, SHOP, SNOW, and AMZN. Check out the video above for a more detailed view of the markets.
Stay Focused!