An interesting week is ahead of us as we approach earnings season.
Reports worth noting this week are Goldman Sachs (GS), reporting before the open on Tuesday, and Netflix (NFLX) reporting after the close. On Wednesday morning, ASML Holding semiconductor reports (ASML), followed by Tesla (TSLA) and Lam Research Corporation (LRCX). Ending the week, Snapchat (SNAP) will report after the bell.
Keep in mind one bad earnings report could guide the market much lower. Let’s see how the market reacts.
Last week the S&P 500 (/ES) broke the low of the year at $3,571 on the Consumer Price Index (CPI) report. In one day, /ES created a new low at $3,502 and reversed back to the daily 21 exponential moving average (EMA) at $3,722. /ES rolled back toward $3,587, ending the week messy on Friday.
Be open-minded this week as the market is making large rallies and reversals.
Two targets to focus on this week is the zone below structure at $3,639 and the overall structure from recent highs around the daily 21 exponential moving average (EMA) at $3,722.
Once we approach this structure, I’ll be looking for a potential rollover. Two key levels to the downside are the previous low of the year at $3,571 and the new low of the year at $3,502. If /ES breaks $3,502, my major downside target is the pre-ovid highs at $3,397.
In the video above, we’ll discuss key zones and major levels to watch on /ES. We also discuss how AAPL is our major compass for the market and its key structure to watch.
Check out my most recent webinar on how I’ve scalped consistently in this market.
Stay Focused!