The market ended last week on a strong note.
Coming into the week, there are a few economic reports, all reporting at 8:30 a.m. Eastern. The first report will be the Producer Price Index (PPI) on Tuesday. On Wednesday, Retail Sales will be reported, with Jobless Claims to follow on Thursday. One thing to keep in mind is Options Expiration (OPEX) on Friday, which could cause extra volatility and premium crushing this week.
Two earning reports to watch this week are Nvidia (NVDA) on Wednesday and Applied Materials (AMAT) on Thursday, both reporting after hours.
After last week’s monster rip, see if the S&P 500 (/ES) pulls back. My pullback target is the daily Ichimoku Cloud top at $3,950. If /ES holds $3,950, see if it continues back toward $4,000. If /ES pulls back and breaks $3,950, my first target is $3,875. My second target is Point of Control (POC) at $3,866.
If /ES continues higher and gets through $4,000, my larger upside target continues to be the 200-day simple moving average (SMA) at $4,080.
Check out the video above to get the breakdown of my critical level on /ES and /NQ and my thoughts on my favorite setup in AAPL.
Stay Focused!