S / R Levels - Sep 16 - 20
These golden levels serve as a predictive tool for reversals and, as seen this week, as a validation measure. SPX, NQ_F, GDX, Silver, Oil, NVDA, TSLA, IWM, QQQ and more jumped the central level.
Last week, in the Weekly Compass, a support or buying opportunity was expected $5332 and $5383. On Wednesday, SPX hit $5407, which is still above that range, but keep an eye on the Dow Jones. It bounced off its first support level at $39,931, and that's what kicked off the rally.
The S&P 500 doesn't always lead the way. The Dow Jones and Nasdaq are also important to watch. That's why I share all three indexes and the Dow is always analyzed in the Weekly Compass.
$5478 was the central level highlighted. It was the green light for a bullish move. Once SPX broke through it after a bear trap on Wednesday, things really took off.
NVDA and AMZN are great examples of stocks that crossed their central weekly levels. NVDA hit $106.7 on Tuesday, and AMZN climbed above $174 on Monday.
Prices can fluctuate around a level, as it happened this week around $5478, that's why I provide seven layers. Each person can choose the level that best suits their risk tolerance.
As traders there is always the temptation to buy exactly at the low or selling at the top, that can be done a couple of times, but this was a choppy week consistent with CPI news and confirmations are a good reference to avoid fake moves. I use 4H and 2H when there is chop in play.
The SPX closed in bullish mode, there is an indecision candle in the latest 4H and 2H timeframes, a breather can come on Monday, but watch the bullish MACD crossover and the Stochastic has not completed its move. This setup looks like eyeing the first monthly resistance level presented below.
A big week is coming, we will know the FED’s decision about interest rates, so having these levels is key to manage risk for: SPX, NDX, DJI, SPY, QQQ, IWM, ES=F, NQ=F, All the seven tech darlings including TSLA and NVDA, GDX, Silver and Oil.
If you trade some of those securities, the information below may be of your interest.