What's going on guys welcome back to the channel, appreciate you guys tuning in we're going to get ready to cover the spy and the nasdaq here we're starting on longer term charts 180 day. 4-Hour charts just gives us a good look back period to kind of see all these levels that we want to touch on. So your charts may not look exactly the same as mine, and you know that's: okay, i'm kind of playing around with different settings all the time but anyways in short, right now, when you look at the s p, 500 or the spy, you will have this kind Of support level right now, around 450 to 53., when we go into the more granular view or shorten the time frame, you'll see a little bit more there'll be more levels, but for now, just looking at these longer term levels and make it a little more simple. So right now, 452 53 is a slight little support area on the s p.

500. 363.78. Is your you know current resistance on the nasdaq, so let's say bigger selloff happens today. Probably shouldn't look any further than 445..

So if we somehow had a big drastic sell-off like we had yesterday, then i would not expect the markets to go any further on the s. P 500 than 445 63 give or take right in that area and for the nasdaq. We wouldn't expect anything more than that 353, because if you think about it right going to 353 areas on the nasdaq, that would be a 10 point, drop or there'd be a thousand point down. And if we did the same here on the s p, that would be 10 points down right now.

The average true range for the nasdaq is uh 847 and the average true range for the s p is 700 or sorry 777. So, to get a 10 point drop in the market, it's possible, but right now the average true range is only eight to seven when looking at the nasdaq and the s p. But when the markets start to turn downwards, that's typically when you get more volatility and bigger ranges. Therefore, by the end of the day, in the event, we did do a 10 point move.

That means the average range of the nasdaq is gon na get bumped to eight and that uh true range on uh. The spy is gon na get bumped up to, like you know, maybe nine eight et cetera, et cetera. So the reason the average true range has shrinked um from what it was a couple weeks back is because we're no longer selling downward we're getting those wider ranging days as you go up, volatility usually slows you get less or you get don't get as big of A ranging day, therefore, that's why the average true range has shrinked over the past couple days or a week, if you may so right now, in terms of worst case scenario, bear probably like 445 spy worst case scenario bear nasdaq, probably like 353 areas. Okay, now, when we dive into the more granular view which i'm going to do a 10 day, 10 minute, charts kind of like the look and feel of it can help us get a little bit of a look back as well.

So when we get into this wider view or sorry more granular view, you can see the reason the markets are holding down right now, arguably nasdaq is holding just below its resistance. Very bearish. Look for the time being. When you look at the spy spy has kind of gone up through a couple different levels, but the main concept here is, since the nasdaq is not staying or maintaining this 363 62 you're, probably going to see a bearish push down and the first target of that Big bearish push in my opinion, would be down to three is 60 56, and if the markets can't maintain here, that's where we could expect a bigger slide out.

So the only way you can see um, oh and sorry, now that we're looking more into uh the more granular view you can see. We actually have price targets that come in at 355.79, as opposed to that 353. We were talking about so now. Instead of just giving you one single price point, you should expect that the downward max target for potentially today, going in tomorrow after hours, etc, would be a 355 79 to a 353 zone and for the s p 500.

We would just say, probably max downside destination. Would be a zone from 4 45 63 to 465.35. Those can adjust and change a little bit as the day goes on, but that should be a pretty good rule of thumb, for you guys going into today. The only way that you could actually get down to these prices that we've highlighted in that yellow box is if the nasdaq actually went below its statistical support of 360 56 and if the spy went below its statistical support of 451.31.

Now again, if you look at the way the market is positioned, we were going up, we are now going down, and so we are in a downtrend. So until we start creating higher highs in breaking above previous swing highs in the downtrend, we can't really say that this little mini downtrend has reversed. So with that being said, right now, markets are in a bearish move. I think you can project a potential downside move on the nasdaq 360 56 and only if you get a lot of selling pressure going through that will we open up the door in the discussion for that move to 355 to 353 same thing for the spy and That that pretty much should be um, i think a good approach to follow for the time being.

So with that being said guys, i will see you on the next video and i hope that helps you guys out for the day.