Good evening traders! 👋
What we’ll cover in the Newsletter tonight:
General market analysis ($NQ/$ES levels)
Market Breadth & Internals
Economic Calendar
Sectors Review
Leaders list
Alex’s Portfolio update
Focuslist including setups, alert levels & explanation
GENERAL MARKET ANALYSIS ($NQ/$ES levels)
NASDAQ ($NQ) Daily
Well, one day is certainly not a trend in a bear market, right? 😅
After closing above the 11534$ level last night, we were not able to hold the gains and break back down below on the futures to finally sell-off at the open. The downtrend was very strong all day long, and we almost retested the June low @ 11068$. We closed at Friday’s low of 11229$.
Tomorrow we’ll have PCE (inflation) news @ 8:30 that we’ll have to watch closely as there are good chances that it will move the market.
The trend is still down and we are again below all kma’s, so the close above the 5dma was only a trap at this point.
$NQ levels on the upside
11229$+11285$ level
11534$ level that we rejected
the 5dma
$NQ levels on the downside
11068$ level
10845/10942$ area is the next potential support if we break below June’s low
S&P500 ($ES) Daily
$ES levels on the upside
3735/3780$ area is now the most important resistance above
the 5dma
$ES levels on the downside
3639$ June low that we were not able to close below today is again an important level to watch tomorrow.
3596$ level
MARKET BREADTH & INTERNALS
NYHL (New 52W Highs - Lows) - Reversal, we’re going back down @ -812
NYAD (Net Adv/Decl) - Reversal from highest in the last year, to the lows @ -2144
20dma @ 594
MMTH (Stocks > 200dma - LT breadth) - Still below all kma’s and at an oversold support area. Seems to consolidate, let’s see!
MMFI (Stocks > 50dma - MT breadth) - Still below all kma’s and at an oversold support area. Closed near 12.03$ recent support level. Seems to consolidate, let’s see!
MMTW (Stocks > 20dma - ST breadth) - Big gap down and reversal here as well, but we managed to close above 8.96$ pivot which is the recent oversold support area.
MCOSINYA (McClellan Oscillator) - Reversal, we’re going back down @ -239
VIX - Interesting action on VIX today. We tried to spike, but were not able to breakout yesterday’s high and also closed below the recent swing high of 32.31$ which tells me we’re still with an inside day and made a lower high on an $NQ lower low.
PCCE (PUT/CALL EQUITY RATIO) - 1.06
DXY (US $) - Very interesting divergence here as well…We tried to push higher this morning, but we finally were not able to hold and closed below the 5 & 10dma. Recently, there has been a near-perfect inverse correlation between DXY & $NQ…so I’m taking note here.
Here’s the $NQ/DXY correlation coefficient - note the positive corr. today.
US10Y (US 10Y bond yield) - Some divergence here as well, but not as much as DXY. We were not able to reclaim that 3.829$ pivot, but we are still above all kma’s…so the trend is still up even if we made a lower high.
IEI/HYG (Credit Spread) - Credit Spread with a false failed breakout as we reclaimed the 1.59 level today and closed at a new high. We’ll have to be careful as we might alert something more serious here.
BTC/USD (Bitcoin) - BTC saves the game once again. Another bounce off the support area bottom level and closed above 5/10dma making a higher low and closing at the 21dma. Some very important divergence.
This was a FREE preview of my daily Market update & Focuslist letter. In the following sections, I’ll cover important parts of my daily routine & preparation for tomorrow’s trading day that you don’t want to miss!
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