We’re sitting in a vulnerable market where patience is necessary amid the choppy back-and-forth action. The flush has shown that the path of least resistance could be to the downside but support from the 21 exponential moving average (EMA) could make the downside path troublesome.
As we’re approaching resistance at the +1 average true range (ATR) the question is if the selling pressure is over. Are we heading toward all-time highs or is the market oversold heading into monthly expirations, grinding the market to the downside?
With the daily squeeze forming on the S&P 500 (ES) the market could see a dip for the next flush or stabilize and move higher. In today’s video we’ll discuss where to short the market and where we’ve positioned ourselves with credit spreads in the Compounding Growth Mastery.
Stay Focused!