We’re finally starting to see signs of exhaustion in the market over the last few days. The market has made a big push with uninterrupted upside momentum for the last 4 weeks.
Now that names are trading at 2+ average true ranges (ATR) with Big 3 buy signals turning neutral, the probabilities suggest a flush to the 21 exponential moving average (EMA).
If the S&P 500 finds support after a flush to its 21 EMA, we’ll look for Big 3 buy signals. Seeing Big 3 buy signals on the lower timeframes like the 1-hour, 30-min, and 15-min charts could trigger the next leg to the upside.
If we continue to flush past the 21 EMA, we’ll have to ignore the idea of looking for bullish trades.
If we can hold support and see the “pretty green colors” on the Big 3 indicator, we’ll look for bullish trades for a push toward these recent highs.
In the video above, we’ll review our watchlist including our number one name on our “buy the dip” watchlist. The AAPL monthly chart is bullish so we could see a push toward new all-time highs. It also has a monthly squeeze with bullish trend, structure, and momentum.
We’ll review names like TSLA, AMZN, XLE, and SMH that would have great buying opportunities on a dip and review our recent trades taken in the Compounding Growth Mastery.
Stay Focused!