Morning Scoop
Things are heating up now… for a while, we’ve been discussing the range we’ve been stuck in and the need to find a direction. Yesterday, we might have seen the day that gives us some clarity on the market’s direction. Let’s discuss what occurred and what we should keep an eye out for.
Markets
📰 News
MSFT up over 7% this morning after reporting earnings after the bell yesterday.
📈📉 S&P 500 Futures Update
We’ve been monitoring this top zone for a while, as it has been the level of overhead supply that price has not been able to surpass. Despite multiple attempts over the past year, every time we reach this level, we get rejected and price drops back down. Yesterday, we broke through our small support shelf and fell below $4100. We are currently holding at this level, but if price continues to decline, we may be looking at a potential drop.
🔮 Forecast
This is the last line of defense. We’re holding steady at the moment, but the open this morning is likely to bring volatility. I’m not sure if we’ll push down further or if we’ll actually see a bounce from here. If we break down, the next potential level of support is around the $4000 range. To the upside, there is still a lot of work to be done.
Wrap-up
I’m not sure what to expect this morning. While I initially considered playing the bounce, overall market sentiment has me feeling either another leg down or a weak bounce. I could be mistaken, but I prefer to stay on the sidelines until I see a favorable setup.
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