The biggest catalyst we’re watching this week that could affect the market is the Federal Reserve (FOMC) Jacksonhole event (moved from an in-person to a virtual event) that could cause a big move to the upside or downside.
All three major indices have been showing a similar pattern of dipping, recovering, and hitting new all-time highs. In the S&P 500 (ES) specifically, we’ve seen a dip buy at the 50-day simple moving average (SMA). If the ES doesn’t turn around at the 50 SMA it tends to reverse at the daily Ichimoku Cloud. The Nasdaq (NQ) showed the most strength with moves down to the lowest dip and back up to the highest all-time high. We’re staying bullish and looking for the market to move higher.
Here is our focused list:
GOOGL — Very strong heading into this week. Fired hard Friday into Monday, breaking its all-time high into the psychological level of $2,800. In a beautiful daily squeeze, look for a retest of the all-time high zone at $2,775. Could move up to the psychological level at $2,850.
ROKU — Looking for a reversion to the mean above $380. Currently underneath the daily Ichimoku Cloud, so watch for it to break above it for a big push higher. As long as it is above $352, we’re bullish and staying patient to see if the squeeze triggers.
NVDA — Looking choppy post the stock-split, yet setting up a daily squeeze that fired on Monday. Exploded higher through the session. We don’t want to chase it, since it has already made the big move. Looking for a potential dip-buy.
ZM — Has dropped lately. Pay attention to see if ZM can dip below the hourly Ichimoku Cloud and work back up to its daily mean at $355. After that, watch for it to move toward key levels up to $364.
Stay Focused!