The biggest focal point all week was getting through the Consumer Price Index (CPI) report on Thursday morning. The disappointing numbers were revealed and the market reversed hard, with the S&P 500 (ES) dropping to point of control (POC) at $4,505.
This volatility roller coaster swung the ES higher midday and it broke above key moving averages. Following negative news from the Federal Reserve, the market dropped back to the mean at the 21 exponential moving average (EMA), flushed to POC, and drifted below it into the close.
News can accelerate technicals, so pay attention and see if the market sells off into the weekend. This dizzy ride will continue.
We’ll use key ranges to navigate the market moving forward. The POC at $4,505 is a massive line in the sand for the ES. Above POC, the market could see upside potential. However if the ES fails to break through these key ranges, it has a chance to rollover to $4,455 and even to the 200-day simple moving average (SMA) at $4,420.
It’s a whipsaw up-and-down type of market. As long as we are prepared, there’s nothing wrong with these volatile swings. We want to use lower time frames, buy low, and short high.
The market can change in minutes and even seconds. Stay open minded and be ready to flip the switch at inflection points.
In the video above, We’ll cover the recent action of the Volatility index (VIX) as well as discuss names on our focus list like AFRM, UPST, GOOGL, and more.
Stay Focused!