The market saw no dull moments during this shorter week as we rolled into the end of the month. The market experienced selling pressure on Friday due to the new coronavirus variant, but we’re maintaining our focus on the charts.
The Nasdaq (NQ) was down 2% on Friday, but the weekly structure held strong, accompanied by a new daily squeeze. If the NQ can find support, this daily squeeze could fire the NQ to the upside, even if it retreats to the 21 exponential moving average (EMA).
The S&P 500 dropped about 2.5% on Friday with potential for a buying opportunity if it falls to the 21 EMA around $4,500.
The Volatility index (VIX) boosted almost 50% on Friday, and if it continues higher we can expect more selling pressure. We likely won’t see a Santa rally unless the VIX moves lower.
Focus on structure, run your scans, and build a watchlist based off setups with the better trends. Our plan is to remain patient with our trade ideas and execute once the VIX dies down.
Watch the video above for our plan moving forward on setups like AMZN, AAPL, and GOOGL.
Stay Focused!