Overall, the bigger picture structure has remained relatively the same. We’re continuing to build off of our game plan to short the rallies. In a perfect world, we want to short the market as close to the daily 50 simple moving average (SMA) as possible.
In the video above, we’ll review the recipe for a potential move back toward the daily 50 SMA:
- SPX & QQQ: Two closes above the daily 21 EMA
- VIX: Two closes under the daily 21 EMA
- $DXY: Two closes under the daily 21 EMA
- HYG: Two closes above the daily 21 EMA
- Big 3 Buy and Sell Signals:
- Cancellation of all lower timeframe Big 3 Sell signals (SPX + QQQ + IWM + HYG)
- Lower timeframe Big 3 Buy signals (SPX + QQQ + HYG)
Overall the structure of the market hasn’t changed, as the SPX and QQQ have not had two official closes above the 21 EMA. This means that overall, the path of least resistance is in favor of the bears.
We can use our Big 3 buy and sell signals to determine when the structure on the lower time frames are changing from bearish to bullish.
We’ll also review charts of big names that reported this week like NFLX, TSLA, and SNAP. We’re patiently waiting for major companies to report earnings next week including AAPL, AMZN, and GOOGL.
In Sunday’s send, we’ll review our open and closed positions in the Compounding Growth Mastery and walk through potential setups for the week.
Stay Focused!