As discussed on Monday, this week was all about the Fed (FOMC) event on Wednesday. On Friday, the last event for the week is Non-Farm Payroll.
After the FOMC event, the S&P 500 (/ES) reacted negatively to Jerome Powell’s comments on if high rates are here to stay in the long term. /ES broke one of this week’s downside targets of $3,850, the 50-day simple moving average (SMA).
If /ES stays under $3,800, my main target is the daily 21 exponential moving average (EMA) near $3,784. See if /ES rolls over to the key zone below at $3,700. From there, my first downside target is the bottom of the zone at $3,669. My second target is at $3,639.
Don’t be afraid to miss out on upside potential while /ES is at levels that bring better short opportunities. However, if /ES gets through $3,784, my only upside target is $3,850.
The Nasdaq-100 futures (/NQ) has been weak after continuous bad tech earnings this week. As it continues to stay vulnerable, we want to keep an eye on how /NQ will impact the market.
Check out the video above to get the breakdown of my critical levels on /ES. I also discuss structure on /NQ and key levels to note.
Tune in to trade SPX, and other potential opportunities in the market with me live in the Simpler Day Trading room. Try a $7 one-month trial!
Stay Focused!