Good morning, guys, everybody welcome back to another morning, video we're gon na get ready to cover spying, the nasdaq as usual. Once you know how these two are gon na move for the day, you can pretty much expect most other stocks to follow that same rhythm. So today, i'm kind of thinking we're going to see the market do a little bit of a bounce move. So for one this morning pre-market we have some mother candles or ghost candle wicks, which many times can signal the market is going to try to trade.

To that price point, whether it be the same day following day or nearby future, so for today, since we've been on a drastic two day, selloff gon na maybe look for a relief bounce on the day with a max price target of these levels here, which are 326.73 to 326, which again when the market updates these lines will probably shift downwards to be about there. So i'm assuming right now, the industry, the market, the way the stock market mechanism works, is the algorithms are expecting the statistical probabilities to update to probably about 326 or close to. Nonetheless, i think that would be the max long target that algorithms would try to trade. The market up to today so being optimistic on a short term bounce for the day.

They could very well take us to about here, but wouldn't be trying to trade any higher than that price point all right and that's going to be the same thing for the spy. So if we go look at the spy, you will see right here pretty much same thing when we look at it. Nice, big wick candle up which you can see, comes very close to 426, so for right now, 326 is 426's spine. The nasdaq max long price room in today in the event the price starts to get above that level and then hold above it then.

At that point i could build the case for maybe going higher, but for now it would just be moving from these lines to those lines and then, once you get above those lines, then we would talk about going higher for the time being, all right now. What i want to discuss is sort of uh the downside action. So when we look at this market, you will see that uh. The reason the market is stopping here is because we're on statistical probabilities, so the next statistical probabilities downwards for the nasdaq um are pretty much down to 378 and there's probably some before that.

But if we're just looking at whole solid statistical levels, the next one down is 300 and then followed by that would be 278.. It is my belief we're going to see the s p 500, hitting prices of 364 on the spine. That is something we talked about months back so just going to pop this on to 180 day 4-hour chart. As you can see, this one has way more levels presented.

It looks confusing, but it's it's really not that confusing once you use it a bit. So here we are market just at the green level, so the way that we rationalize this market is we're going down. So every green candle up is a counter trend bounce until it creates a higher low all right. So, for now it's a downtrend move and as the market bounces into the green lines, you can expect that people will sell it back down and if it surpassed this green line and went up to say this gray line, then you'd expect they would sell it down Off that one, so until you have a higher low setup, the market should continue trading down now, prices you can expect the market to reverse and then put in a higher low is every one of the solid levels so like right here you see how the market Goes down to the green line, then we start to bounce a bit.

This could be a potential reversal spot that creates a high or low pop. You don't know until it kind of happens, but you can have the expectation as it starts to get into those solid levels. So say this one doesn't hold and we just crash out all the way down to the blue ones. This would be the next area.

You would consider a reversal and a potential high or low pop phase, all right and then the same thing going down. You take out these levels, then you would look down to the purples to have a reversal and a counter trend. Long pop all right and that's literally how it works on a pretty much day to day week to week month month, yearly basis, all right. So when you look at the q or the nasdaq here on the right, you have these green levels here.

So these break to the downside, you'd pretty much be looking down to 378.. Now right now, i'm not presenting the six month levels. I want to keep it somewhat short and digestible for you guys, but for now that's pretty much how how the game goes so today, kind of watching for a counter trend, long pop and as that bounces back up would look to be bearish into that. And then, if the market holds a higher low, then we could look for another long bias trade, but for now just really watch markets, maybe max long 426 by 326.

I think it was on the nasdaq and then, if everything falls apart again, which would be very surprising to have two or three thousand point down days in a row, then you'd be looking more bearish now uh to maybe make this a little bit more simple on Some of your guys's eyes - it might make sense just to bring up like this chart here. So when let me take that off and we'll redo that right here, yeah so to make this a little more simple, pretty much the concept is, is once you take out this split and that split you should have a pretty decent market sell-off right. So if you look at where the demands at right, this is where the demand was at the past like two times. Arguably, there was one here right.

Let me show you this one all right, so there was one right here all right and then look at what the sell-off after it took it out right. So whenever the market shifts from red to green and then just goes, that's kind of called the split demand. So you have it right here: right market was red and then just immediately shifts splits and runs right, and then you have it here. Kind of stops.

Splits runs. So these are two known demand spots. We go on a rally up and then we pull back and then you kind of had one here where the market was just chilling and then split up run right and we talked about split, it's kind of like when you look at the candles you can see How they they literally almost like one stops and one starts and there's not a lot of messing around in between the candle body. It just kind of splits and goes, and so that's kind of what we would call demand splitting and so anyways.

Putting that into uh play when we go back and we look at the chart with statistical levels, you will see that this split demand lines up with statistical level. This split demand, i believe, lines up with statistical levels. So when those get taken out on the downside we should sell down and then we would target the next level down so now when we look at uh this chart. Well, this is a spy.

Let's go to the daily time frame all right, so we go to the daily time frame right. You can see the split kind of happens like right into there and look at where the green level's at right there all right, and then you can see like this split, where we put that red line lines up with that level. So the concept here and i can make it more confusing or complex if i want to, but to put it simply, this demand breaks fully right, which we've kind of done. Then you expect the market to kind of run to 418, okay and then the 418 demand breaks.

Then you expect the market to run to 411 right and then, when 411 or if 411 breaks, then you expect we go to 404 and 404 breaks and you expect to go to the 396 right. That's pretty much! How that that works! All right so hope you guys have a good rest of your day, a good start to the week i'll catch you guys on the next video everybody take care.