Well, the afternoon has been a continuation of the trend we’ve been seeing recently, with prices steadily dropping. It seems to be the current theme in the market. While we have seen some push up in the last few days, it has been followed by a slow grind down for the rest of the day. Despite this, earnings beats have managed to keep us afloat, and big tech is leading the way.
META is up around 10% after earnings report yesterday and today after the bell AMZN will report. If the theme keeps up they’ll be up tomorrow morning like MSFT and META have done.
📈📉 S&P 500 Futures Update
This chart provides a good view of what’s currently happening. Over the past few days, we have been breaking down and are now hovering right at this support level, which is now attempting to become resistance.
Lets keep things simple here, if price continues to hold below this zone we can expect more downside, if we recover this area we can see a push up from here.
I was able to capture this move yesterday in the market. I was expecting a rally in the morning and was looking to watch it fade as the day went on. I waited for my opportunity and right before this trade, I took a shot that I was stopped out on. Once I saw this approaching my zone again and breaking the trendline, I jumped back in and was able to make back the loss from earlier.
Now I want to note, I didn’t “revenge” trade this. I had a game plan going into the day, I took my entry early with too tight of a stop. I patiently watched and waited for price to give me a confirmation. I got that after the trendline broke, and once I saw the pullback after the break of the trendline, I took my position. It’s important to have a game plan and stick to it, while also being flexible enough to adjust when necessary.
Today, I’m keeping it simple once again. I’m waiting for the price to reach my levels of interest, and then I’ll decide if it meets my criteria for entry. If it does, I’ll take the trade. If it doesn’t, I’ll happily continue to look for opportunities from the sidelines.
In a volatile market like this, it’s crucial to remain patient and disciplined in your approach. Rather than chasing trades or forcing setups that don’t fit your strategy, it’s essential to wait for the market to come to you. By doing so, you’ll increase your chances of success and reduce your exposure to unnecessary risk.
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