Hey Traders!
As we gear up for this week, we need to be patient with tech stocks. The QQQ needs a few solid closes above the 21 exponential moving average (EMA) before we’re confident it can resume its bullish trend.
The SPY has a structure on the daily squeeze that leads us to believe we could have several weeks of solid upside, just like last month. Should the SPY fire this squeeze long, we’ll have the “wind of the overall market” at our backs for swing trades.
When a squeeze in the index is lining up, it is our time as swing traders to look for high-probability setups. We like LEN and GOOGL for swings to the upside here. We have a position in LEN, and will wait for QQQ to regain a bit more structure before jumping into GOOGL. Keeping an eye on indexes is always a wise way to plot our next moves.
Stay Focused!