Heading into the new week, the market is showing bearish structure across the board on the major indexes. The issue lies in the fact that there isn’t much movement happening because of large levels of support.
Note that the key level of support for the S&P 500 (SPY) is $420.
There are weekly and daily squeezes on the SPY with lower time frame squeezes on the 4-hour, 2-hour, 1-hour, and 30-minute charts. These nested squeezes could fuel the fire short and take the market through the key level of support at $420.
Remember, a squeeze is a large build up of energy. If the market can release a large amount of energy and break support below, this could trigger a move into a new low.
In the video above, we’ll discuss the scenarios for the market next week and review both short and long setups on names like INTC, IWM, AMZN, and UBER.
Stay Focused!