Morning Scoop
Good morning, traders! I hope you had a restful weekend. Today marks the start of a new trading week, and we’re coming off a strong rally last Friday. However, with big moves come the possibility of slowing momentum or consolidation. It’s important to pay attention and see how stocks perform after a strong week, so let’s stay focused and prepared for whatever the market has in store for us this week. Happy trading!
Markets
📈📉 S&P 500 Futures Update
Great move on Friday as it helped us push through the levels we discussed earlier. The market gained momentum and rallied swiftly, which was a welcome sign. However, we cannot get overly optimistic just yet, as every week brings something new to the table. Bulls have been able to attain levels, but it’s important to remain cautious and vigilant.
🔮 Forecast
We have yet to reach the $4200 levels, which seems to be the next notable level to aim for. However, it might be a slow process, and there could be some consolidation or a slower upward movement. We should also keep in mind the possibility of retesting Friday’s breakout. As we are currently in a transitional phase, we need to exercise caution in our trading approach.
Chart Analysis
Starting to see more and more charts with a similar pattern to MSFT’s chart. We’ve been consolidating for at least 10 months, where we’ve stopped making lower lows and have been trading around the same area. This is a positive sign as a slowdown in selling and prolonged bottoming processes can often lead to significant upside rallies. Let’s hope this trend continues, and if it does, we can expect assets to start rising again.
Wrap-up
I have my watchlist ready to go, but today I plan on being more patient than I was on Friday. While I was waiting for the breakout and we got it, now that we’ve made the move, it’s time to slow down and wait for the next opportunity to jump in and ride the wave.
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