We wrapped up a week full of events that created a recipe for choppiness.
Three major events – the Federal Reserve meeting, quad-witching, and quarterly rebalancing – led to volatile back-and-forth action that ended the week with little to no difference in price from where we started.
Keep in mind this can be a harder market to swing trade if we aren’t giving our trades enough time until expiration.
In terms of structure on the S&P 500 (ES), we are seeing a daily squeeze at the 21 exponential moving average (EMA), positive histogram, weekly stacked EMA signals, and a weekly squeeze. Together this gives the ES a bullish structure with a lot of built up energy.
With these catalysts out of the way, we’ll gain a better sense of direction next week for where we can expect the market to head toward the end of the year and into January.
In today’s video, we’ll review the structure of the major indices, the market conditions after this week’s choppiness, and some clean setups that came up in our scan results.
Stay Focused!