With Options Expiration (OPEX) on Friday, the S&P 500 (/ES) is nearing major downside structure.
For the next few sessions, watch the daily structure of the market. If /ES tops out at its daily trendline, it could pull back and reset. Or /ES could break through the trendline and accelerate towards $4,500.
OPEX is approaching on Friday which can cause major chop and consolidation. In these times, we want to pay attention to the key levels that /ES will chop at. Point of Control (POC) is sitting at $4,272, and /ES has another key level above at $4,320, the 200-day simple.
If /ES breaks its high of the day from Thursday at $4,292, it could break through $4303 and head towards $4,272. However, if it rolls off $4,292 and breaks $4,272 my downside target is $4,260.
Top on my focus list is AMZN, which has been struggling at its 200-day simple at $145. Look to short AMZN if it struggles at $142 towards downside structure at $140.
I’ll be live in the Simpler Day Trading room this week. Tune in to trade this and other potential setups with me live and navigate the market during OPEX.
Stay Focused!