The market is at key inflection points which means plenty of opportunity for us traders. Once price reaches major support or resistance levels, anything is possible.
We must avoid having any major bias in one direction or another.
We’re continuing our conversation on the daily Ichimoku Cloud now that the S&P 500 (/ES) is trading near the flat line level at $4,510. This will be the Cloud top level for the rest of the month, with another flat line level to follow in April.
This is a critical zone for the overall market:
Now that the /ES broke through this range, we could see a push to $4,600 at the top of key ranges.
The /ES could also fail, retreat to the Cloud top, and roll over.
While the /ES consolidates through these key levels, we are also watching the 4-hour squeeze develop. This is starting to give the market structure. As the squeeze gets tighter and tighter, it could eventually either pop out of the Ichimoku Cloud or hit resistance and reverse.
The market could continue to be range-bound, so play off the key levels, watch the squeeze develop, and be ready for when the next big move occurs.
In the video above, we’ll define the key levels on the major indexes and discuss our two favorite setups on PANQ, the cyber security stock, and TSLA now that it is breaking through huge zones.
Stay Focused!