Good morning, guys welcome back to the channel happy monday, and hopefully you guys had a good easter weekend, we're going to get ready to run through the market here, as we normally do. So that being said, let's get right into it. Here is the spy this chart is the nasdaq right now we're using standard error, charting methods pretty much that's what all those lines are on the chart. Now.

Last week we had mentioned that the market was trading in between this zone. From here to here also, we had more levels on the chart. In the last video there was a level right in the middle we told you you could play off of, but today we're doing a more simplified dumbed-down version of the system and everything. So, regardless last video market was trading in a box from here to here on both the spy and the nasdaq all right, you can see that we have now broken out of that box.

So now that we are out of that box, we open up the discussion of do we trend down to this level, the 327 67 on the nasdaq or the spy 429 45. So the way that you rationalize this is we have traded in between this zone. The bulls and the bears they battled the bears won and have taken us down below. That level doesn't mean we have to go that way, but now the discussion and the door has been opened for going to the green price level on the spy and the green price level on the nasdaq.

Now the way you rationalize this again is: do we get acceptance below this pricing structure on both the spy and the nasdaq? In the event, the market does not get acceptance below that price point, which is one second spy. 436 50 call it nasdaq. 338. 40S.

338. 50S right right in that area, so acceptance would be. Does the market want to stay below that right? Do we reject off that and remain trending down below that? That's the question, or do we gain acceptance back above, which is, we went for a gap down little attempt to go lower and then we're back up and holding above. So that's really what you're watching in the very immediate time frame is you're looking to see you know, maybe this gap that we have made over the weekend into this monday.

Open right does that gap fill and then we move lower. The gap's already been filled on the nasdaq spy has a little more to go right so you're looking to see, does this gap get filled and does the market press back this way right or do we continue gaining acceptance and staying above right these levels, all right, So, that's that's really. What you're watching for all right now to go a little further in depth all right. Let's say markets get acceptance below the prices we talked about and trend stays down, stays bearish! Then you just expect that the move is going to try to go to 429.45 and until the market gains acceptance back above that little gray level in there the green levels in play all right.

So, as a trader watching this market, you are pretty much hoping for a bear move down to here or you're, looking for a higher low setup off of 436.47. So if i could draw what it probably would look like, it would be either roll down something like that or market. Does one of these and starts holding a little higher low flag off that level, and then that point we can probably press a little higher. So, for now what i'm doing is pretty much watching this morning, bearish into the open looking for the market to reject somewhere around here and see.

If we do roll the market back down, we did gap down that gap's pretty much been filled. But again, if you look at the nasdaq here, you can see where that price point's at it's at 338.23. So unless the markets are actually holding above that which could be today tomorrow, a few days from now doesn't really matter but until they're holding above that, we know that we're not going to see too much more bullish movement unless it's a bottom bounce oversold bounds. You know what i mean so if we were to kind of look at say, like a five day, five minute chart kind of getting a little more in-depth than i probably want to.

But it's monday i even got to get my bearing straight for the day. So, looking at uh what we're doing now, all right we're looking into this time frame, um, sorry, yeah! So, looking into this timeframe, you can see right. You can see how this that gray level! We were talking about in the larger time frame. That's that right there right! So it's just! In short, it's it's just this kind of zone.

If i made it myself right, that's the zone um same thing with the uh, the spy right. Now that we've gone in and we've gotten a little more granular, you can see there's levels and stopping the market here. Putting in little tops here that cause a pullback and then you get this level here, cause the pullback, so just in general, it's it's really just this level here on the spine and arguably these two levels on the nasdaq that, if we're not maintaining above those, then You're not really that bullish for now, okay, this market gapped down then created higher low trends, all the way back to its most recent breakdown. So this is a break out downward.

This is a retest gap. Fill of that breakdown. So unless the bulls are strong enough to maintain the price above that breakout level, then we'll most likely try to swoop down something like that all right. So that's that's all we're watching going into this morning, at least i and i'm watching to see.

Do we or do we not get some sort of acceptance above or below that sort of pricing, uh structure or pricing zone uh? For the time being? Now? Let's say markets don't want to go down and they actually somehow create a nice bullish move here on the day and rip upwards, then the plan would be all right, say, markets do something like this and we we launch out right. The next idea would be okay. We launch out, then we then we may look for a target to 341.11, so that line there. That would be the next target up for me, so we gain acceptance and push we'll look for the nasdaq and the spy to go as high as that line right.

There 341 etc. Okay, um, but yeah i mean in reality now for the next bearish leg stretch down. You have to be getting down below all of that right. So right there, no, not good enough! You can do it like this, so this right here, all these three lines in the spine till you get below that you shouldn't see a big trend down, move like this okay and then, if you did, your target would be these green lines right there and on The nasdaq um, let's see what this one looks like.

Okay same same kind of deal, so you would uh. You would need the spy to get all the way below here, which is a low of say, 435 12, and then that would open up the door for the nasdaq to be pushed down to 330 60 and the spy to go down to 430 429. By the way, if you did go down to 439 or sorry 430 to 429, you would also be um getting down to sort of the bottom of this left shoulder right. There's a lot of people talking about this inverse head and shoulders formation right.

Well, the low of that inverse head and shoulders formation is all the way down here, but arguably, where most of the control and consolidation and battling took place was right at about that 430 price like right in there. So if we just put a horizontal line from this green one for 29.45, so we just go like that. You will see right where most of that consolidation and battling going on - and the lows was right around that 430 price, which the green line is right about. There so a move to the green line would also complete, pretty good or pretty closely a picture perfect, inverse head and shoulders formation, which arguably does not have to bounce but um.

But this would be a next low risk kind of level to watch for a bounce plan all right, so that's the spy, that's the nasdaq and then a couple other things that kind of piqued my interest. Um was this k-a-s-a stock got some pretty decent news today. Um, it's been holding up. Okay, so far, um, arguably just entered a downtrend, might see a little bit of a sell action here unless really just want to squeeze short some more um.

So this one, i have to run a double system on so give me a second to to make this make sense. Okay, so for this one this is a penny stock. So it's something you can keep an eye on today had some good news. You can read the news not going to go through it all.

It's easy to borrow on light speed, easy to borrow on think or swim. So it's it's a regularly available stock to short across a lot of platforms, which arguably creates a perfect storm to have a short squeeze many times, so definitely something to keep an eye on now. Here's the concept is the reason that we saw this pullback right here. The selling action this top this top - i could explain every single top, but just just this one here all right this one here and here, which then creates this little rollover.

All of that was created because we have reached the plus four, arguably into the plus three standard error zone, which is a known selling level, so we're gon na just put a box like that right. That's why you're starting to see some selling pressure into here, because from this blue to this purple is generally a strong selling zone, whether it's long selling out they're, long or shorts? Entering short, it doesn't really matter either way, so we have this little box here. That's the standard air plus three plus four top area zone and from here there's people selling short there's people selling their longs. If the momentum really continues, we could see a nice top blow off here where markets are strong and squeeze out of here.

If there's enough short selling, which i'm assuming there's a decent amount of, so in the event you really break out of this price point, you do have the potential to see the stock run, all the way to the 8 to 10 level. So this would be the max price point. I would go for on a mega long, breakout on casa casa, whether that's today or tomorrow, so the same way that we drew that little box here for the the blue and the purple see all that selling. That comes in there.

A next bigger selling zone can be all the way up here now i guarantee that it goes there, but the concept is is if this does a mega breakout. You may not find enough heavy sellers until you get to about there. That would arguably stop the trend. This also kind of reminds me of uh v e r.

U so i can show you an example of this with v e r: u um, but i think v v eru might have exceeded a bit so yeah vru's, arguably different, but should help emphasize the point: it's not the same setup but um yeah. If we do like a five day, five minute, this will work better five day. Fifteen minutes all right, so you can see here with uh casa or not casa, but v-e-r-u. All right.

You can see this blew up and then you didn't you mean you just pretty much ran all the way up all day right until you got to about the blue into the purples and then you started to see your selling in your pullbacks right and then you Pull back break out again and this breakout ends up pulling back to exactly the purple right there. So there's more to it than what i'm going through right now, but the concept is as many times you won't see heavy selling pressure on big moves up until you get to blue purple zones, not because they're known selling areas, and then, if you do in the In the event, you actually break out that blue purple, then you're going to be taking out short sellers. So you guys know this is a short squeeze, and that reason, that's a short squeeze is because you know that you had sellers here from the blue and the purple. So the blue and the purple creates a lot of selling and short sellers and blah blah, and this was them getting squeezed out the following day.

And then this is the market returning back to the blue and purple level, where a lot of them had their averages for shorting in those levels. So anyways. That being said, that's today's morning. Video hope you guys enjoyed that i'm going to be trying to do at least two videos uh a day here, uh see how that works out with a morning video and then an afternoon recap of what has taken place over the course of the day.

So with everybody have a good day, and i will see you on the next video take care.