The market is playing ping pong between two important levels that will determine the path of least resistance.
The market needs to hold the hourly 200 simple moving average (SMA) in order to stay afloat. Things will get ugly to the downside if SPX breaks the 200 SMA. The dynamic would shift in favor of the bulls if SPX moves above the daily 21 exponential moving average (EMA).
On Friday, SPX moved back and forth between these two levels. The trading decisions we make will come down to how the market breaks down between the 200 SMA and 21 EMA.
In the video above, we’ll lay out key levels on HYG, VIX, DXY, and the overall market. Stay tuned for Sunday’s newsletter to see what the weakness in AAPL means for the market.
Stay Focused!