With the Federal Reserve (FOMC) meeting coming up on Wednesday, we’re keeping in mind that the market could rally or sell off into the event. Whether it be big news or non-eventful, it’s important to watch how the market reacts. The overall market mostly chopped around last week and finally started breaking out on Thursday and Friday into all-time highs.
All three major indices formed a v-shaped reversal on Monday after hitting new all-time highs. The S&P 500 (ES) started out Monday with a large bounce, indicating that we could move higher over the next week. As long as the ES stays above the all-time high (ATH) zone it should continue to move higher. The Dow Jones Industrial Average (YM) followed this v-shaped pattern and logged a new all-time high on Monday. The Nasdaq (NQ) had a large selloff down to last month’s Point Of Control (POC) at 14,918 and a reversion to the daily mean but attempted to move higher into an ATH. If technology continues to break into new highs, we should see the overall market move higher with it.
Here is our focused list:
GOOGL — Had a huge rejection last week but is printing a V-shaped reversal. If V-shaped reversal holds, look for a strong push to $2,800.
ROKU — Has been dropping and approaching a key level – the weekly top of the Ichimoku Cloud and the 200-day simple moving average (SMA). Could continue to drop to $327. Be patient and watch the 30-minute Ichimoku Cloud for indication of what might happen next.
AAPL — Broke out of daily wedge and also formed a V-shaped reversal. Passed its ATH at $150. If AAPL continues to break above $150, watch the squeeze fire and see how high it could go.
Stay Focused!