There are a few catalysts heading into the short week.
The Consumer Price Index (CPI) comes out on Wednesday at 8:30 a.m. Eastern, followed by the Options Expiration (OPEX) on Friday at the close.
Pay attention to TSMC earnings on Thursday morning to watch the semiconductor sector for potential setups. On Friday, GOOGL will have its 20 to 1 stock split that will take effect on Monday.
The S&P 500 (/ES) dipped through its support structure last week and rallied to where it previously failed at $3,900. This is where we want to look for a potential double top.
With OPEX this week, we want to focus on the /ES Point of Control (POC) below $3,828 and the daily 21 exponential moving average (EMA) at $3,875. If /ES heads toward $3,828 (POC) and pops, we want to see a rip out of the structure to $3,966. If /ES breaks $3,828 (POC), our next target is $3,741.
Similar to /ES, the Nasdaq (/NQ) could have a double top and reach $11,804 (POC). Look for /NQ to drop to its structure at $11,604. If /NQ pops, it needs to get through $12,207 to hit our next target, the zone at $12,609.
Here is our focused list:
NVDA — We want to continue to look to short its structure at $152 to our next target of $146. Then look for NVDA to fill the previous gap at $149. If NVDA holds $152 and breaks through, look for a push toward $168.
SHOP — If SHOP drops this week and nears $29, be mindful of a pop toward our key zone at $34, the daily 21 EMA. If SHOP doesn’t move lower, look for a pop toward $34 at the daily mean and short at $30.
I’ll be live in the Simpler Day Trading room from Monday to Friday this week to cover the market. Tune in to trade these setups with me live and look for more potential opportunities in the market.
Stay Focused!