What's going on guys welcome back to the channel, appreciate you guys tuning in with me this morning. Sorry, i've been posted the past couple days again just been pretty busy over here, so we're gon na get ready to cover the market. Um first thing i want to do is pull this chart from the top here. Go full screen here and really talk about this chart.

So over the past. Call it a couple trading days or even about a week or so we've been getting some mixed signals um and really that's just because the market's gone through a rally and we're in a sideways consolidation market we're not trending um. So we've had a lot of crosses that didn't have much follow through the upside. You know one here to the downside, another cross here, the downside.

Yet we gapped up following day so in a moment of consolidation, not getting any sort of clear directional signal versus uh via an ma system. If you may uh today, with the gap down and the move down pre-market, we probably got another bearish cross um. So we'll see how the bears do today, uh on on that cross, okay, so here's the deal the market can be bullish today on sort of a hole right. So if the market wants to sort of hold this previous price action level as opposed to falling through, then the market can rally on the spy back up to prices of call it 412 to 413 or so because that's where the most recent probability break was, and That happened after hours yesterday and we faded out, so we could theoretically just bounce back up, retest those levels and then get sold into again.

So one game plan you can have is market does not just break down and it rallies back today to do a retest of say the 412 area um before selling back down, and that would be a retest of the previous breakdown all right. So that's kind of a kind of a plan i'm going for today, um for some reason i just don't think the market is going to sell off uh right away. I feel as if we're gon na try to bounce before selling off more um. But let's look at this chart here on on the nasdaq, so this is a 20-day chart in the nasdaq all right, so this should help kind of put things in uh to perspective.

So this is a 20-day one-hour chart on screen to the right - and i think this is was this - maybe like a 10 day 30 minute or something yeah either way. The point being is resistance is coming from the spy here and we're down. Okay, the current support system right now is the nasdaq and that's at 30206. So the way that this pretty much works is market on a rally, bounce we'd expect can go back to the price of 412 on the spy.

A push lower can go down to 30206. In bounce, so this is your breakdown level 30206, and your break out level currently would be like 4, 12, 68 to 4 1202. So you can't have explosive rallies until you get above that and you can't have explosive breakdowns until you go below 30206, but you can trade back and forth bounces and rallies in between those two as well. So that was the point of me trying to say we can rally up to here and this being a little support so pretty much.

The playing field right now is in between 412 412 68 spy to 30206 on the nasdaq and then in the event, we could go above or below either or that's when you talk about further price targets. So the way it works with the spy is in the event we do break down a day which would be the nasdaq going below 302.06. Then we could actually see the price of the spy fall down to 403.51. That would be the first target down after that support break.

So if we can break through the previous price action, we would then trend down the statistical support at 403 51. in this move right here that i'm circling right now. That would be a result after the nasdaq were to break that line right there, because once it does that, then we could keep falling okay um. So what i think is going to happen is we'll see, i think, out of the gates um.

I think the market on this, the nasdaq is going to continue selling down. I think out of the gates. The market is just going to fall directly down to the price of 302.06 there on the nasdaq from there. I think we do a little bit of a bounce um and then try to go lower.

So my max long again today is going to be the 412 68 412 area. For now, the max downside short for the beginning of the morning is going to be to 30206, unless of course, it just falls right through that, then this would become the new resistance right there at 30206., okay uh. So i think i said enough we'll see what ends up happening today. Um, like i said i will play long on the inside um back to the right to 412 area on the spy, and we also got a couple upper ghost wicks here this morning.

Pre-Market arguably need to get touched, so that being said, i'll catch, you guys in the next video take care.