Major Key Levels

After huge swings last week, the market is trading at major inflection points. 

When we reach big levels in a headline-driven market, we need to remove our bias and stay mindful that anything could happen. The market could fail at key levels (as we’ve seen recently) or break through them and continue to explode.

 

S&P 500 (/ES)

The bulls will have to fight hard now that the S&P 500 (/ES) is approaching the daily Ichimoku Cloud and trading above the weekly 21 exponential moving average (EMA) at $4,455.

On Monday, the /ES held the 200-day simple moving average (SMA) at $4,465 and is now trading above the 50 SMA support level, which we haven’t seen since the market rolled over in January.

Our line in the sand this week is the 50 SMA zone between $4,400 to $4,418. We’ll see if bulls will be able to take the /ES higher or if the bears will drag the market below this zone.

Remember, when the market reaches massive ranges we must evaluate the big levels we could see next.

In the video above, we’ll cover the major chart analysis, review our focused list, and lay out the road map ahead.

 

Here is our focused list:

SHOP — Closed at $780 on Friday. Looking to buy the dips. Above the $660 range, SHOP has a chance to push higher. See if it could move above $700 to $712 and hit $780 this week. Below this level, it could sell off to $600.

NVDA — One of the few catalysts with their global AI conference, training, and key notes this week. Large key zone from $269 to the after-hours level at $275. NVDA is trying to push out of the daily Ichimoku Cloud. If it moves through $275, it could keep exploding to $285. If it breaks below $257, we could see it move back toward $250 and $240.

Stay Focused!