Now that the market has digested the FOMC minutes and NVDA earnings, we’re ready to take on whatever the market brings next on Friday.
In this video, we’ll break down the S&P 500 (/ES) daily chart to show similar patterns over the last two days. This gives us more clarity and confidence moving forward.
We’ve seen the market hit a key level, flush below it, and make a strong recovery for a reversion to the mean. This is an important lesson of how price acts at large key levels.
After a big flush to $3,855, we saw /ES seek out liquidity in a cover pop type fashion. What we mean by liquidity is price working toward point of control (POC) and the daily mean (21 exponential moving average).
Regardless if we’re bullish or bearish, this is the area we want to step back, reanalyze, and prepare for what can happen next.
We’ll review the major indices and cover a few setups on our focused list on NVDA and SHOP.
Stay Focused!