In this special, early edition of Focused Trades, we’ll walk through my morning prep and discuss what zones we’re watching in this vulnerable market. The overall market is breaking down and firing squeezes, which is when we like to move our attention toward playing the markets.
Since the S&P 500 (ES) hit the high at $4,740.50, the market has become vulnerable, trading at tricky levels. The market is in bearish territory as every pop in the ES hit the 21 exponential moving average (EMA) and rejected it. As of Wednesday, the ES is officially below the 50 simple moving average (SMA).
Another big focal point is the daily squeeze in the market as momentum is setting up. Our biggest key level in the ES is $4,549. If the ES can head toward that zone we can see great short opportunities.
Watch the video above for key zones we’re watching and a breakdown of the three major indices.
Stay Focused!