There are two major catalysts heading into the week. Tuesday is election day; politics aside, the market is always looking at who is in power and making decisions. At 8:30 a.m. Eastern on Thursday, both the Consumer Price Index (CPI) and Jobless Claims will be reported.
AAPL gapped down on Monday after its announcement over the weekend that they are cutting their outlook for iPhone shipments due to China lockdowns.
After breaking structure during last week’s FOMC event, the S&P 500 (/ES) continued to reject the daily 21 exponential moving average (EMA) near $3,784. Overnight on Monday, /ES broke above $3,784 to start the week.
The market is near a problematic range of targets from $3,800 to $3,820. If /ES gets through $3,820, see if /ES can head toward the structure above near point of control (POC) at $3,866. If /ES breaks $3,784, my main target below is the structure near the zone from $3,763 to $3,735. If /ES breaks $3,735, see if it can drop to last week’s low of $3,704.
With major rotation happening, the Nasdaq-100 futures (/NQ) has been hit the hardest. If /NQ can break through Friday’s high of $10,396, my first target is $11,100, and my second target is the daily 21 EMA around $11,200. If /NQ rejects $10,942 and breaks point of control at $10,800, I have two major downside targets. My first target is last week’s low of 10,656; my second target is the low of the year at $10,484.
Pay attention to the volatility index (VIX) as it approaches a major level of $25 and how that may impact the market.
Check out the video above to get the breakdown of my critical levels on /ES. I also discuss structure on VIX and review my focus list setup on AAPL with essential levels to watch.
Stay Focused!