An Update On The Make Or Break Levels We’re At In The Market Right Now

Welcome back, everyone! Let’s take a look at a few things. First of all, yesterday I talked to you about the fact that I would not be interested in remaining long. What came back behind the high of this bar and you’ll notice what happened in the afternoon. We started pushing down below the level and it led to a deeper correction the remainder of the day into this morning and then pushed back up as we hit some accumulation areas. With that being said, that’s why these levels are so important. As we go into tomorrow now, not only do we have that level, which we ironically we closed right at today. Now it’s really the 7450 level that’s going to be very important. I want to see the Nasdaq get above there. There will be the distribution in the backdrop that we have to worry about. But getting above that 7450 could bode very well for the Nasdaq to even have a chance to continue. Remember what I said yesterday. We have a negative divergence on the Dow and S&P. It’s a triple top divergence. If we had higher highs three times and lower lows on the indicators. That’s not a good thing. Right now, the distribution bar from yesterday that we closed at has us trapped on the Russell as well. I want to get through this 1725 on the Russell going into tomorrow and I want to start seeing pushes up to the S&P and the Dow leading up to tomorrow. Then I want to try to find a move above 7450 for some Nasdaq related plays. Whether it’s on an intraday or swing basis. Since it’s going to be Thursday, I’ll probably be looking for intraday.

One thing to keep in mind, I keep showing you that strategy for Goldman Sachs. You’ll notice that these markets have held up pretty well. We’re now back to that key level that I warned you about before that was going to be so important. What’s happening we’re at that level on a daily and weekly basis. With all that being said, we have negative divergences and key levels on the Nasdaq and Russell. We’re on distribution on the S&P and the Dow. I’ll be also looking for some guidance going into tomorrow on Goldman Sachs. I want to see it power through that 240 level. If it can power through and not fail at this key level, then this market has a fighting chance for continuation highs.

That’s it for this evening. I’ll have a lot more to share in the coming days. I’ll see you in the Live Trading Room and in the nightly videos. Have a great night!

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