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Many sectors are showing Big 3 sell signals and overall “ugly”. The S&P 500 (SPX) is choppy but has a weekly squeeze with a Big 3 buy signal. If SPX continues to pump heavily-weighted names, like Apple (AAPL) , Google (GOOGL), Nvidia (NVDA), and Advanced Micro Strategies (AMD), the SPX can keep the market afloat.

These heavily-weighted names are overly extended from the daily 21 exponential moving average (EMA).

In the video above, we’ll review the five names that are holding up this market and discuss potential exhaustion using the Big 3 indicator on the smaller time frames.

Stay Focused!

The major indexes finished the day slightly up (but mostly flat). A majority of traders are in a “waiting game” until the Federal Reserve announces its interest rate decision on Wednesday.

The S&P 500 (SPX) closed back above the daily 200 simple moving average (SMA) but remains below the 21 exponential moving average (EMA) and 50 SMA with a daily Big 3 sell signal. For now, I’m still a fan of shorting the rallies. What might give us a rally to short tomorrow is the hourly squeeze in the SPX.

In the video above, we’ll review key levels the bulls may face as there is major resistance above on the SPX and QQQ.

ANNOUNCEMENT: The update of the Big 3 Indicator is going live tonight, March 20th! Be sure to check your Big 3 Indicator Page to get the most recent update. Don’t have the indicator? For a limited time, you can get the Big 3 Indicator for 30% off in our Tax Day Pre-Sale. Use the coupon code: TAXDAY at checkout. Note: This sale ends tomorrow, March 21st, at 11:59pm Central. 

Happy Saint Patrick’s Day, traders!

The game plan coming into the wek was to short rallies in the SPX. We did that on Tuesday with a call credit spread in the Compounding Growth Mastery.

What has changed this week? SPX remains under the 50 simple moving average (SMA), 21 exponential moving average (EMA), and the 200 SMA while printing daily Big 3 sell signals. All of this does not bode well for the bulls.

The QQQ, though, is looking bullish this week. In the video above, we’ll take a look at the overall market and big tech names like AAPL and GOOGL to get a better read of this market.

Stay Focused!

It was a tough week for the bulls as bears regained control of the S&P 500 (SPX).

The SPX flushed through the daily 21 exponential moving average (EMA) and the 200 simple moving average (SMA). Even worse, there are sell signals on the daily chart.

In the video above, we’ll use the Big 3 indicator, the Big 3 Heat Map, and review market structure. Let’s keep it simple as the market lines up for a potential push lower.

Today’s newsletter is combined with Sunday’s. Make sure your subscribed to the Focused Trades Youtube Channel, turn on notifications for Taylor’s Sunday prep video.

We’re focusing on the S&P 500 (SPX) as that is what it’s all about right now. We’ll apply anything we cover on the SPX and apply it to the big names like AAPL, GOOGL, and AMZN. 

The SPX flushed to the daily 200 simple moving average (SMA) and now the market is in a short squeeze heading into the weekend.

We’ll use the Big 3 indicator and Big 3 Heat Map to observe how the market went from bearish to neutral signals. This shows the path of least resistance is to the upside, or at least some progress for the bulls.

In the video above, we’ll use the DXY and HYG to correlate where the market might go next.

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The question for next week is how the market handles this dip.

On Friday, we saw a short squeeze in the S&P 500 (SPX) after breaking key levels this week. SPX broke the 21 exponential moving average (EMA), $4,000, and the 50 simple moving average (SMA).

In the video above, we’ll review the current market conditions and where we’d want to initiate any new trades. For now, the game plan is to remain patient.

Stay Focused!

Let’s pull up the Big 3 scans and review names with the daily Big 3 buy versus sell signals.

Bigger names like GOOGL and AMZN appear on the Big 3 sell signal scan. This shows which direction the market might be leaning toward more…

In the video above, we’ll discuss the ideal entry zone for these names on our watchlist. We’ll also scan for names that we could potentially look to enter for a good short opportunity next week.

Remember, we want to take the “easy” trade.

Stay Focused!

Getting on the short side of this market has been a good decision thus far. Our 4100 call credit spread we opened in the Compounding Growth Mastery last week is rockin’ and rollin’!

The bulls have given back most of their progress. The SPX is below the 21 exponential moving average (EMA), below the 50 simple moving average (SMA), and printing a new daily Big 3 sell signal.

In the video above, we’ll lay out the key levels that are lines in the sand for the bulls to have a chance to bounce again. We’ll also review the Dollar (DXY) and the junk bonds (HYG) to build on our thesis.

Stay Focused!

Note: The market is closed on Monday, February 20th for President’s Day.

One of the problems for the market is the DXY.  We use the Dollar as a correlation for the equities market. If the DXY can’t get under the daily 21 exponential moving average (EMA), we’ll continue to see the selling pressure on the S&P 500.

The HYG is another problem, as it’s lost strength and started breaking down. This is bearish for the equities, and we’ll need to see HYG get back above the moving averages to push for a rally.

Until these problems change, take caution when going long.

In the video above, we’ll cover the charts and get ready for the week ahead. We’ll also review the new call credit spread we opened on the SPX in the Compounding Growth Mastery.

Stay Focused!

The good news for the bulls is the new daily buy signals on the Big 3 indicator. For the first time in over a year, the SPX, QQQ, XLK, SMH, and other names have the Big 3 indicator turning bullish. This ultimately means that the trend has shifted in favor of the bulls.

The bad, though, is slightly outweighing the good. The S&P 500 is bullish, with a squeeze on the daily chart and trading near the 21 exponential moving average (EMA). The problem is the lower time frames, shown on the Big 3 Heat Map, are printing Big 3 sell signals. The S&P 500 won’t get that explosive rally to the upside if the lower charts are bearish.

In the video above, we’ll review the DXY and HYG and what the current market conditions mean heading into the shortened week ahead.

Stay Focused!