Move On The SP500 is About to Shake The Entire Stock Markek [ Tesla, Amazon,]

In this article we take a look at everything to do with the stock Move On The SP500 is about to shake the entire stock markek [ Tesla, Amazon,] crypto and commodities markets right now is not only a speaking point of volatility.

But also some bearish signs coming to an evening star formation on the stock market has a lot of people concerned and we have a red box down here which signifies a key level that you need to be looking at crypto's going wild again commodities Are going up and some markets look good while others look really bad to stay tuned to find out more about all of this soon so welcome back to our market recap for the markets closed 7th of February 2022. and if you're interested in everything to do with the markets whether you're an investor or trader please remember to smash that to leave your comment as we think you'll enjoy some of the content here today but let's start off by taking a look together at some of the key big

Moves for the session and it was clear that it was another attack on growth stocks the Nasdaq was the worst performer for the day and it was google facebook tesla Microsoft PayPal Netflix and even some semiconductors that didn't have a good session so let's break down what wall street was doing throughout the session because it's important we understand the psychology of the bigger funds and the bigger managers well as we often suspect Monday starts off usually

There's a little bit of a pull-up which is created by retail gets excited we want to buy up it then dipped bought up again probably trapped a few people into purchasing it and by the end of the day the sell-off was pretty evident of course led by tech and really only the smaller caps iwm Russell was doing better and we'll speak about that later in today's video we'll also be covering off on a little bit of tesla and some of the key stocks that we're seeing some

Great setups happening right now so let's move over to the sectors things like jets and gold have done well in the session that was good because these are two section sectors that we've been looking at a little bit throughout January and it was really just a mixture of sell-off across the board it wasn't hugely towards the consumer staples and the defensive sectors xlp and xlu but it was clear that wall street was getting ready for a larger Tuesday as this was

An inside day move due to probably not having enough news to push it through any of the key zones we'll talk more about inside days and what they mean for the market but yes it wasn't really a highly volatile day and once we break past either a key resistance or key support we expect quite a large move that we'll be looking at a little bit later so this is the earnings for the week ahead there are quite a lot of earnings but they're not as big as they

Have been obviously we've seen Facebook amazon the apples the googles we do have Disney coming out after the close on Wednesday we also have Twitter before the open on Thursday Cloudflare some other giant companies coming out and there's going to be quite a lot of interest around these earnings as we continue to create the narrative of whether earnings are living up to expectations and of course what's going to happen with interest rates and

Inflation and is that a big concern will we see a sell-off in growth that continues down so i wanted to talk about what we've discussed here for the last couple of days in trading and that has been that when we have large rallies at the end of months which is quite rare especially when they're big there's four-five percent we tend to have a week or sideways month or next month remember the stat here is 30 towards the positive side so it bodes kind of poorly for

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February in terms of having a start to end positive month and that's why we're going to see continuous volatility the other thing is when we have a bad January which we did this year in 2022 we do tend to continue on to February only 33.3 percent of the time do the stats line up as being a positive for that month so when you're thinking about markets right now and especially what's being attacked which is growth stocks and all of those types of inflation

Concerns about those it makes or it seem to be a reasonable conclusion that we do tend to have that weakness and you'll notice here that if we went through the last 20 years of the NASDAQ returns or technology returns they do tend to be weak in February and March but guess what it turns around so a lot of people are going really bearish we tend to be as a community a little bit more bullish towards the bull side medium to long

Term and this could be one of the best opportunities that you're going to see in the next couple of years to pick up some of your favorite stocks so the key here is always having a plan towards what you want to pick up and also having a plan of how you're going to trade in volatile times and we'll be discussing some of those things throughout the video if you're interested in following us on Twitter as well at fx evolution we'll be

Posting some extra little bits of snippets of information we've posted some stuff on the bitcoin breakout since then it's gone up well over two thousand plus dollars and of course, tesla announced discussions for the week ahead so there's some good stuff there over at fx evolution let's move over to the vix though let's talk about the volatility in the market so volatility is still high we have a bit of a rule as a community and our community rule is if

The vix is above 20 we probably need to stop swing trading and for anyone that's done swing trading in the past you probably wonder why the market doesn't make sense you get ripped up a lot swing trading is really tough when the vix is above 20 when volatility is high so we tend to go with scalping day trading and picking technical analysis levels of great stocks that you want to hold in your investment portfolio and that's something that you can do and make an

Easy rule maybe for yourself when the vix is above 20 we do that so the vix has come back down it's hovering around that area and we're waiting now for a break if the break to the downside occurs expect the vix to of course skyrocket back up and that's going to be something that a lot of people i'm sure are looking at for the trade let's move over to the two years something as well that we need to pay attention to the two years trading at 1.3 percent we had a

The flag we had a second flag and the prediction i guess here is around that 1.4 to 1.5 is quite possible in terms of the two-year rate to get to we know that markets get a little bit let's say in excess they go a little bit too high the fed's probably sitting around here right now the market's here and the key is for them to meet in the middle so while the market's going out of control and freaking out this is a time where we expect volatility but once

We start to turn around with this two-year that's going to be one of the key four reasons that we believe the market has found its base so remember watching the two-year and also watch the 10-year in terms of interest rates that are sitting at about 1.918 and when we put it out to prospective you'll notice that closure on the weekly was pretty big this is a key resistance coming up if it breaks past here boy oh boy could the markets get incredibly

It volatile worthwhile watching that in the last 24 hours we've seen some pretty big trades we've also seen gold breakout again and this has been in a massive trading range but we have some great signals here towards the bull side and it looks like gold is finally going to get another good day trade on it we've got a trend line it's held up now for a while but think about the left-hand side story the technical analysis coming into this and what we have here is we have a

Bullish hammer another bullish candle and closure above that range even if we pull back now we're above the 20 moving average the red line the 50 moving average exponential the blue line and the 200 simple moving average all of these will act as a form of dynamic support for gold so the chances are here that gold may be actually breaking out and showing some signs of strength and this goes along with silver because when you look

On the silver chart it's just at the resistance and if gold continues to pump up what could this be a very similar thing double bottom pattern really nice tweezer bottom here in terms of technical analysis so both silver and gold are showing the best signs they have for a little while now it's been a tough trade but there are sometimes some good day trades there so silver is that the resistance and gold is looking towards the next level of resistance

Which is going to be around 1830 and then past that of course i'm thinking towards 1870 at that point that's the next really big zone for this good movement in the hope it can continue its movement up now one that's already completed u.s oil congratulations to anyone that's been taking this over the last couple of months it finally hit our 92 got a little bit higher at 93 and this is our longer-term resistance for it for the time being so for people that

Are worried about it at the pump i'm not sure if this is the end for oil but it's certainly at that previous support becoming resistance remember this is why technical analysis is so great you can tell the market has hit the zone and people are taking profit it literally shows you that that's what's occurring why we have a long leg doji a high a low an open a close and if we break down and close below this we have to expect oil to have a little bit of a pullback possibly to

The 88 to consolidate for some period before maybe making the next move if it goes and breaks past the new highs well next stop could be 103. so the oil has you know still got potential in it but i'm thinking it's probably exhausting at this point a lot of people in the community believe that as well and it's hidden that resistance so congratulations to anyone that traded it let's move over to some stocks now look at some key sectors that we love then we'll go into indices and

The crypto markets and we'll start off here with tesla because tesla is stuck between a rock and a hard place 950 has a lot of calls on it but more importantly 1 000 has the most amount of calls on it for the week so where do we expect resistances to be formed well of course around 950 would make sense and then around a thousand would make the next level of sense from the bull side now where did it stop in the last session it got up to a high of 9 47 77

So right on that 20 moving average the red line plus our previous horizontal resistance and we've got a story here basically a rejection or hanging man style candle a rejection candle and a new rejection candle if you're a bull on tesla does this resistance matter i think it's a how yes it does at this point it's going to be pretty damn big if it breaches that the next logical step for it based on options and based on previous support resistance would be

A thousand there could be a great day trade in there but there also could be a fantastic trade towards the short side if we start to see the NASDAQ fail move underneath some key supports we'll see soon this level here at 880 could be also a great trigger and i think the next trading sessions will be very interesting for tesla because as you know we do love it as a trade stock and when it reaches a range it tends to move very quickly very fast and of course

Give you a great daily percentage so tesla is trapped within a range some great ta there let's move over to some of the favorite sectors at the moment or should we say probably the least favorite of the market sectors and this is biotech now biotech's seeing some pretty large volume transactions going on around this base and that's one of the key signs that we always look for we saw some pretty good volume over here but we never got that breakout past the

Resistance here we have a resistance forming around that 96 levels and if xbi is able to get through it it's kind of forming a base especially if the market's turning around at the same point and it ends up going to make you know a new peak off the previous one this could be one of the sectors that do the best over the next couple of years remember biotech and healthcare are kind of mid-cycle within the new cycle so around two years to maybe two

And a half three years after the whole crash occurs we see the transition to biotech 2 healthcare it's probably still early but certainly on its base and remembers max Payne has also been achieved here when we think about it because a lot of people would have been buying here fair enough and what we have is we have a long leg doji a rejection candle and some great wick levels here so again big sellers at the zone, if it breaches through, could be one for you to

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Look over the next couple of weeks let's look at another favorite right now which is obviously going to be amazon and amazon rejected the session it went higher and then rejected creating a shooting star or pin bar that many people think of it as we've got supports becoming resistance and this could be one of those ones with day trades remember amazon I believe is in the rumor of purchasing other companies at the moment that could also hurt their share price

Depending on whether the market likes the deal but more importantly, we have kind of like a stop-loss level if you're wanting to go down this line you have obviously a bit of a day trade trigger potentially below the low and for some people, they're going to be looking for a gap close because they look at the fundamentals of amazon they say you know what i don't think it's that good it's maybe not as good as everybody thought it was

And yes the after-hours pushed it up but i'm looking for that gap close so the opportunity in te in amazon or tesla or any of these stocks is actually quite big moving forward especially if we get the follow-through certainly an interesting candle here at the right zone and you'll need to place it based on your, of course, own technical systems and figure out whether it's for you or not let's move over here to arc k so RK has rejected the 20 moving average quite

A few times this is the red line and it keeps rejecting it rejected it in the previous session again it is forming a base though and again volume is the highest we've seen it at some time so we believe there is a transition going on here and we've talked about this several times RK while maybe not all the stocks in it are great the hyper stocks, in general, are the most bashed in the market they're cheaper in some in many ways than they

Were pre-pandemic so that is that the valuations have gone so far to the downside that they're cheaper than they were even after all the growth they've experienced during the pandemic and that's pretty amazing when you think about it this is truly a big change in fundamental valuations which is probably a healthy thing for the markets but we have this resistance we have this downward trend line and we certainly have some points

Where we'll be kind of going through as a community together when we believe the turnaround story is coming let's move into indices now we cannot ignore iwm but we're going to say really the same thing which is this is currently in Wyckoff distribution and obviously it's broken below we won't really be convinced that the whole market is recovering broadly until the 2000 small companies get back above this level we know that shorts are tough so that's a

Big thing but this is an early warning sign that bad things are happening in the markets here basically the small caps are kind of like the health of the economy if they're not holding up and the big ones are where it's holding up aj the big tech stocks and they're doing better in the big companies in the world this is really showing that there's just not enough strength there's not enough broad-based recovery and the markets can tip over at all points so we are still

Looking at iwm from a weekly standpoint we still understand that it's in this big kind of pattern at this stage and if we take a look at the two hours you'll notice that it's really trapped i mean basically we have a resistance sitting around the 203 60 and then we have a new low at 195 here if that had happened we would basically go peak-trough lower peak lower trough and then move back down to the 190. so there will be trades here

But i think the better trades are probably in something like the qqq a lot of you were trading the NASDAQ the last two weeks and doing amazingly well and watching the s p 500 for queues and then of course trading the NASDAQ accordingly which is a very smart and great plan so with the qqq with the NASDAQ what is the big key zone well it all comes really around here and let's break down the smaller time frames let's go to the two-hour time frame

What we'll notice is we have great resistances we have a fantastic bulk side scenario where it breaks through here and it goes to fill the gap wouldn't that be fantastic day trade yep certainly would be and then we have pressure being put on the bottom end so that is the resistances around here becoming support and for illustration purposes, i'll use the NASDAQ so the ndx here just to show the level of pricing

Range i think some people that don't trade the qqq won't get it so 14 500 that is the zone resistance resistance support will it support again think about the scenario peak-trough lower peak lower trough a sequence would be made here which would send the market bearish and possibly all the way back down to 14 000 where we get the big test so reckoning is coming if we get under 14.5 closed underneath that zone the

The most logical technical answer for that next level is going to be 14k a lot of people are going to be pretty scared at that point and with the right reason so that's something in the bare case scenario the bull case it's all about getting above here and then, of course, filling the gap and putting the pressure back on that 15 2 levels for the s p it's the same thing spx we talked about the evening star formation here the gap up the candle the gap below it hasn't

Broken to a new low but guess what it's all around the same zone so if we break down a two hour here it's very similar we have the resistance at 44.50 we've got the peak the trough the lower peak the lower trough and let me bring up the spy just to get the prices so you can see them and of course, that will allocate around 440 that will allocate at the resistance for the gap close around 450. so when we have a look at options i think that's something that we

Need to understand what are people doing in the market are there bearish bets being placed are their bullish bets being placed i think the problem for the bears a little bit here is that there are more puts open than calls to the upside so there's clearly a range here this week but there isn't necessarily a huge amount of bullishness generally you see the market kind of trap bullishness like they did in the previous week go back

And read some of our articles we really use this incredibly effectively so i'm not sure if we can use this as effectively other than saying we have some put walls that are sitting around zones and of course if we breach underneath those that would be surprising but we will have to watch how it trades throughout the week if we go to the next week things get even weirder because at around that 420 we have a strong put wall

So that is that if the market does go short this week we suspect that when it's short it will be met by buyer demand because it's unlikely to get underneath that 420 over the next two weeks remember this is the expiry for the 18th of February so we'll continue to watch these as we get a clearer picture we'll bring it back in and we'll use that along with our technical analysis but certainly worthwhile watching let's move over to the crypto

The world we certainly called it as a community well done the trend line was broken that trend line when it broke created the first big move and a lot of people kind of were not so sure about this zone and fair enough I mean you had supports resistances all over the place it hit that resistance and then a lot of people weren't convinced that this move was the real deal for crypto well we still don't know that it's the real deal but it's

The best movement that we've seen really since the fall in the markets because not only have we broken through a key support resistance but we got through the 20 moving average which is the daily redline and on top of that if you actually look at the weekly closes you'll notice this is the first time in the entire decline that we saw two green weeks bullish rejection candle bullish close guess what there's never been two red two greens in a row since we started

Falling in that epic collapse of the crypto markets so it's a good first sign 46 000 is going to be a big key 44 000 which it just reached is a small mini resistance but from 44 if it breaks through 46 will be the most logical answer and that's because that's just such a huge level that was being held many times before continuing to watch that space Ethereum is similar broke through the trend line there in the last 24 hours that's a pretty big deal it is

Recovering it's on the daily 50 some people are going to be looking at that and saying oh weakness weakness really it comes down to bitcoin if bitcoin can get up to 46 ethereum will get up to around that 3 400. i mean that's the expectation that's the way the market is and the markets are across the board recovering whether you're looking at something like you know a matic or you're looking at an acardano

Or you're looking at you know shib or any of those other things we've seen big breakouts in xrp in the last 24 hours we've seen big breakouts and shib and there is a little bit of FOMO a little bit of hype coming back into this market which is probably good because the fud was so extreme for so long BTC shorts can often also tell us whether this market can be sustained or not and at this stage BTC shorts is continuing to stay pretty normal not necessarily

Towards the weakness or strength, we're not seeing an increase which doesn't mean that whales are dumping the market just yet for the week ahead really the big news is i think we've got cpi on the Thursday session other than that there's not too much that's really coming out make sure you have your economic calendars ready and we wish you all the best for the week ahead please remember to leave your comment and share this article to your friend and we'll see you in the next one bye.