Happy Halloween, everyone! Get ready for a spooky week ahead.
There are a few note-worthy earnings reports this week, all reporting after the market close. On Tuesday, Advanced Micro Devices (AMD) reports; Wednesday, Roku (ROKU) and Qualcomm (QCOM), followed by Coinbase (COIN) on Thursday.
Multiple economic data reports are being released this week. On Wednesday, the ADP Employment Report is set to release at 8:15 a.m. EST, followed by an FOMC announcement at 2 p.m. EST, and Jerome Powell is set to speak at 2:30 p.m. EST. At 8:30 a.m. EST, Jobless Claims will be released on Thursday, and Non-Farm Payroll will be reported on Friday.
After last week’s messy tech earnings, the S&P 500 (/ES) held structure and closed at our bigger picture trendline around $3,903. With trendlines above and below, let’s see where FOMC takes the market this week.
If /ES breaks above $3,903, my following targets are $3,936 and the zone above $3,981. If /ES breaks below the trendline, my first target is the zone below $3,875. Two major downside targets are the 50-day simple moving average (SMA) at $3,850 and the daily 21 exponential moving average (EMA) near $3,785.
Remember that the market could stay range bound in this structure ahead of the FOMC event on Wednesday.
Two major compasses for the market this week are Amazon (AMZN) and Google (GOOGL).
After bad earnings last week AMZN had a large gap to the downside breaching their low of the year at $101. AMZN recovered and reversed through $101, ending Friday’s close at around $103. AMZN is a great compass for tech; see if they sell or buy to hold technology this week. With a gap from $103 to $109, see if AMZN can hold $101 and fill the gap to $109. If AMZN breaks $101, my main downside target is Friday’s close at $94.81.
Check out the video above to get the breakdown of my critical levels in GOOGL and AMZN. We also discuss zones and major levels to watch on /ES as it deals with bigger-picture structures.
Interested in my strategy? Trade live with me this week in my day-trading intensive!
Stay Focused!