We have a week stacked with catalysts. Two major events to keep in mind are SPX Rebalancing and Triple Witching on Friday.
There are multiple reports being released this week, all at 8:30a.m. Eastern. The reports were focused on are the Consumer Price Index (CPI) report on Tuesday, the Producer Price Index (PPI) report on Wednesday, and the Initial Jobless claims on Thursday.
The S&P 500 (/ES) bounced at its support structure at $3,900 and rallied. See if /ES pulls back to $4,081 and pops toward the top of the zone at $4,101. If /ES breaks $4,101 my next target is the next zone at $4,153.
With /ES gapping into Monday’s session, it could fill the gap to the downside toward $4,074. If /ES fills the gap at $4,074 and doesn’t hold $4,059, my first target is $4,042, the 50-day simple moving average (SMA). My second target is at $4,013.
The first setup on our focus list is SHOP. After announcing news of executive changes, it reversed through its downside structure at $31 and rallied toward $35, the 50-day simple moving average (SMA). See if SHOP pulls back toward the daily 21 exponential moving average (EMA) at $33 and holds. If SHOP pops and breaks through $35, my next target is $37.
The next setup I’m focusing on is NVDA. NVDA ended Friday at the $143 gap fill. See if it pulls back to the low of year at $140 and bounces toward $143. If NVDA breaks $143, see if it pushes through $147 and finishes the gap fill at $149.
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