The biggest storm cloud hovering over the market is the tension between Ukraine and Russia. As of Wednesday night, Russia invaded Ukraine, causing a large gap down for the market.
The S&P 500 (/ES) dropped lower as the news worsened, but the market popped to close higher. We have to be ready as traders for these opportunities. Our job is to look for inflection points and learn from them.
The market is aware of the Russian-Ukrainian conflict, but the question is how does the tension unfold, who will speak on it, and what will happen next?
Now that the market is aware of the news, the indexes turned green heading into the end of day Thursday.
One level we want to focus on is the last stopping point from the most previous selloff at $4,212.75. This could be the next gap the market fills and our line in the sand.
If the /ES continues to hold above this key level, we can see some relief for the overall market. If it spends more time below that key level, we’ll look to roll back to the recent lows to the $4,100 level.
In the video above, we’ll lay out a compass of key levels going forward using the four-hour Ichimoku Cloud, moving averages, and point of control.
Stay Focused!