The market made the perfect reset on Monday for the chance to make a big move next.
The S&P 500 (/ES) hit the low of the year at $3,639 and bottomed. On Monday, we saw a cover pop to the daily 21 exponential moving average (EMA).
On Tuesday morning, SHOP will have their 10-1 stock split, which we’ll review in our focused list in the video above.
On Wednesday, June 29 at 9:00 a.m. Eastern, Federal Reserve Chairman Jerome Powell will speak on the Economic Policy Panel Discussion at the ECB Forum on Central Banking.
Keep in mind we are heading toward the end of June, which also means we’re approaching quarter-end rebalancing. Next week will also be a shortened holiday week, as the market will be closed on Monday, July 4th.
On Monday, /ES ended the day at the daily mean (21 EMA) at $3,900. If /ES holds $3,900 and breaks through the high of the week at $3,948, expect the market to move toward its upper zone and trendline structure (as discussed in the video above).
If /ES breaks $3,900, look for a drop to the key zone at $3,855. After that, there’s potential to hit its prior low of the year at $3,800.
Here is our focused list:
NVDA — Broke below its 21 EMA at $172 on Monday. If NVDA can’t break above $170, it could drop to the support structure below near $164 to $163 down to point of control (POC) at $158. If NVDA reverses along with the rest of the market, see if it can hold its 21 EMA, break $174, and fill the gap from $176 to $180.
SHOP — Practice patience after the stock split Tuesday morning. See if SHOP can move toward $383 and fail for a short opportunity to $355. If SHOP drops to $355 first, then look for it to bounce to $383. We’ll need SHOP to get through its stock split before heading to its next inflection point.
AMZN — Trading near its daily 21 EMA at $113. If AMZN holds its daily mean, look for it to work its way to the trendline structure above to its 50 simple moving average (SMA) at $120. If AMZN does not hold $113, look for a drop to $109 and $107.
I’ll be live in the Simpler Day Trading room from Wednesday to Friday this week to cover the market open. Tune in to trade these setups with me live and look for more potential opportunities in the market.
Stay Focused!