The overall market is in play after ending last Friday on a vulnerable and volatile drop. We’re prepping and watching specific levels to determine where the market is heading.
The S&P 500 (ES) is pinching between two levels, holding the 50-day simple moving average (SMA) and rejecting the 21-day exponential moving average (EMA).
There are three major compasses we will use to navigate this market…
- The first bullish step is seeing if the ES can hold the 50 SMA.
- Look for the ES to break the 21 EMA and continue to trade above it.
- Eyeball the trendline that is forming to visualize next potential moves. There is a good chance the ES will break out of this wedge and head toward the zone from $4,549.60 to $4,592.00.
Here is our focused list:
GOOGL — Bottoming at the Ichimoku Cloud and lingering near the 50 SMA. Focus on $2,788 as this was the level that ripped GOOGL to new highs. This is a good place to buy the dip at the Ichimoku Cloud and play it up past the 21 EMA. Look for GOOGL to hold $2,850 to $2,888.
SHOP — We do not have a bias either way, but there is great potential for a dip buy ideally at the 200-day SMA at $1,357. Look for a move to $1,470, $1,500, and $1,520 this week.
Stay Focused!