Good morning, guys welcome back the channel really quickly wanted to get this video out to you guys this morning, going to quickly bro bring this chart from the top down really quickly, because we did discuss this chart from yesterday's video a little bit. So yesterday recommendation was to be optimistic of the markets being a little more long bias for yesterday and maybe into this morning into this day, because we had the blue cross over the run. Okay, as a result - or you can just say following morning, we have gapped up. I think four or 500 points so market closed.

Yesterday right around 400 we've hit a high of 407.87, so heck we've almost gone up 800 points from after hours to pre-market this morning. So again, for those that are new to the channel, which won't be many since for shadow band will be. This is an open, high low closed chart, no pre-market. No after hours data from there, you add a 10 sma and a 50 sma color code them.

However, you choose on my chart, the red is the 50 and the blue is the 10. and about as simple as you can make. It is when the blue crosses the red. The markers are in an uptrending motion and when the blue crosses down below the red they're in a bear trend or a bearish momentum is move now, you'll see the last time we crossed bearish.

We had one down day, two three four, arguably five, we got the cross two days ago. We had yesterday being slightly up to consolidation to the following day being a gap up of 800 points or 700 points. Okay, so i'm bringing this chart back up, bringing into this view, so this is the way the market looks all right. We have gapped up overnight, we're on tour of a move as recommended yesterday we wouldn't look for the market to be anything higher than 410.72 for right now, all right, so the reason you're getting some resistance pre-market where you're getting it pre-market, is due to these levels.

Here on the nasdaq, so you can see 305 29, 304 446 statistical probabilities on the nasdaq kind of creating that top resistance pre-market look over left spy again, that's what created this top resistance. But if you look down you have statistical probabilities here for support. So that's what's creating the bounds on the spy there, which is creating the bounce on the nasdaq here. So you know if i zoom in a little bit, this is kind of how it's working nasdaq levels create the resistance for the spy.

This morning, spy levels create the dip support that you're, seeing here on the nasdaq. So today the dip level supports have been put in place from the spy and the resistance levels pre-market have been put in due to the nasdaq. So the way you kind of read this is obviously above here would be good for bulls and below these levels would be bad for the bulls. Okay.

So it's okay to see this come down bounce here and try to go higher, but you don't want to go below and sustained below, because then it's easier to continue moving bearish all right. So something to be mindful of is the nasdaq or sorry the uh spy has put in a mother candle here and guess where the mother candle goes to the next statistical probability right. So you can see this dotted line here. That's the statistical probability! Where does the mother candle go down to that level all right? So with all that being said, this is a wick to the downside, which again could either get filled a day or in a couple days.

But for now we're going to be more optimistic on the bull side of the market and that's simply because we have this cross when this crosses down below. So when the blue crosses down below the red like that, we will be back into more of a swing. Bearish move all right doesn't mean there can't be day trading, bearish moves, but in terms of a swing, bear move we're not going to be swing bearish until the blue is back below the red and the same concept being for the long side. You would not have been swing long in this market until you got that cross and then yesterday was a consolidation day and the following day was an 800 point gap up? Okay.

So if you're going to be swing, long, your swing long once you get across right and your swing bearish once you get the cross like you got back there, okay. So for the time being, i think you can still be optimistic. The markets are going to try to put in a long day. My targets for the market would be back to about 4 10 411 on the spy, arguably 309, 3 tennis area on the nasdaq and that's all in the hope and expectation that the cross worked and we're going to stay remaining above 405 on the nasdaq.

Arguably, down to 404.54 on the nasdaq all right guys, everybody take care and have a great rest of your morning.