Hey Guys,
The market boomed upward overnight. That's 3 strong days in the last 4. The S&P 500 is near 3,750 right now.
And the most recent green bar is interesting. Check out this chart of the MES futures (which is correlated with the S&P 500):
The market has been going down over the last month of course. And you can see the price tried to break through that simple moving average line (SMA) a couple weeks ago but failed. It's possible that the simple moving served as some form of resistance.
But over the last few days, the price is again trying to break through that SMA level. It initially got rejected (that red bar that is the third from the right) but then today it forcefully broke through that SMA line.
Sometimes when there is a price level that provides support or resistance, it takes a forceful penetration of the level to finally get through. And sometimes that can be the basis for a breakout.
Will this turn into a breakout in the upward direction for the S&P 500? There's no way to know for sure, but that's at least one positive sign for potential upward movement. This market is still highly volatile though, so nothing would be a surprise at this point.
There are no new trades today. But there are lots of tickers starting to show up on the watch list. That means our pipeline for potential trades is growing and we might see more trading action in the near future.
If you have any questions or feedback, I'd love to hear from you.