We’re starting the new month with a short week and one crucial event. On Thursday, Federal Chairman Jerome Powell is holding a conference at 9:10a.m. Eastern.
The S&P 500 (/ES) guided lower on Friday from negative news of Russia’s Nord Stream Oil production cut. Keep this in mind this week as it could guide the market this week.
/ES made its way toward the major support structure at $3,900. If /ES fails and breaks $3,900, my first target is $3,857. After that, the second target is $3,807. For upside potential, see if /ES can push through $3,955 and head toward $3,980. The main upside target is $4,025, the 50-day simple moving average (SMA).
Coming into the week, our top setup is SHOP. If SHOP can hold structure at $29, see if it can get through $32.My main target is a reversion to the mean at $34. If SHOP struggles to hold $29 and breaks the earnings low at $28.99, my next target is $28.
Another focus list setup is NVDA. With bad news from last week restricting sales to China, NVDA formed a gap. If NVDA can head toward the low of the year at $140 and fail toward $134, my main target is $127. If NVDA can get through $140, see if it can fill the gap above at $143 to $149.
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Stay Focused!