After a short-lived spike in volatility earlier in the week, the markets are entering the weekend with regained support above the 21 exponential moving average (EMA) and therefore the trend, momentum, and structure continues to be bullish in our book.
We’ll be looking for the daily squeezes in SPY and QQQ to take us into new highs as long as the bullish daily squeezes hold (see charts below).
Any time the market spikes in volatility, sudden selling pressure follows. When we get this abrupt selling pressure it is incredibly important to keep an eye on the volatility index (VIX). If the VIX continues to go higher and higher, the probabilities point toward the market dropping lower and lower. However, when VIX quickly begins to retrace, as it did this week, we tend to see the market bounce back and continue the current trend.
Keep an eye on VIX next week, but for now all looks proper.
If the bullish trend in the market continues over the next few weeks there are a handful of daily squeezes that we will look to take advantage of for setups. One of our favorites is NOW, which we entered on Wednesday in Compounding Growth Mastery.
FB, AAPL, and GOOGL all present clean setups right now and will be at the top of our watchlist heading into next week, as they are poised for solid moves if the QQQ and XLC grind higher from here.
These are the types of setups that should serve us well over the next few weeks if these squeezes in the indexes fire to the upside. In this Sunday’s prep video, we will cover these setups along with a handful of others that look poised to make solid moves in the short-term future. Until then, enjoy your weekend and we will talk to you on Sunday!
Stay Focused!