Alex's daily Market update & Focuslist - 01/16
Market is the strongest we've seen in this bear market, but things are getting extended.
GENERAL MARKET ANALYSIS
S&P500 (ES_F) Daily
Price Action Analysis:
ES_F opened weak last Friday but found support at the 3964$ level again and trended all day strongly to close green finally.
This is classic bull action. Weak open, strong close.
The buyers stepped in two times to defend this 3964$ level, showing this is a strong area of support. That said, we are at such a critical spot, as we’re right on the 200dma and the 4016$ level that seems to offer good resistance so far.
As you’ll see in my takeaways, we are also quite extended short-term, so I am leaning towards a strong push above the 200dma, then a pause/consolidation… or a couple of sideway action sessions before pushing through it.
One thing is certain, after the last two weeks’ very strong indices & breadth action, the next pullback will give a lot of information on the health of this rally. We’ll make sure to analyze it very closely as it happens.
On the upside,
4016$ (we did close above it Friday, but still below on the futures) & 4082$ (1.5% above) are the two levels I’ll be looking closely at on the upside.
We also have the very important 200dma that will be around 4020$ tomorrow, so one to watch as well.
On the downside,
I want to see the 3964$ level to hold now on a retest. The 50dma is also a significant level to watch on the downside.
NASDAQ (NQ_F) Daily
RUSSELL 2K (RTY_F) Daily
In the following sections of tonight’s letter, I’ll cover essential parts of my daily routine & preparation for tomorrow’s trading session.
✅ My overall current market Takeaways & GAMEPLAN for tomorrow
✅ My daily Focuslist, including setups, alert levels & explanation (LONG/SHORT)
✅ My Portfolio update
✅ Sectors Review
✅ Market Breadth & Internals
✅ Economic Calendar
✅ Prime Model spreadsheet (PT_database)
✅ Leaders list (technicals, fundamentals & potential TMLs)
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