The market is continuing its march higher and isn’t showing signs of slowing down.
Technology is the strongest sector leading the market, driving the bulls higher. With the bulls in control, the market is reaching a point of being extended.
The S&P 500 (ES) is hitting 3+ average true range (ATR) from the daily mean for the second time this year, the first being in April.
While we want to use our technicals to help capture the probability of moves, we should not rely solely on the theoretical. Although extended, the market could keep grinding higher and there isn’t any promise for a pullback.
Remember our “if this, then that” rule? Rather than having a strong bias, listen and react to triggers in the market to determine its next move.
If the ES breaks $4,650 we could use this as a trigger to see it drop to $4,627 and potentially down to point of control (POC) at $4,620. Vice versa, if the ES breaches $4,674, it could run to the psychological level of $4,700.
Watch the video above for more trigger points and key setups like ABNB, QCOM, and GOOGL that we’ll be watching in the market.
Stay Focused!