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Hey, traders.
We are in the middle of a market correction.
The market's standing in the range.
SPY has the upper level of the channel limited by resistance lines at 313.1, the lower level of the channel is 298.8
If we will break the lower level, we will get a possible fall in the area of 280.
It is hard to say whether the market will be supported or not. I would not bet on buying any time soon.
The market is under pressure from several factors: the virus, Biden's leadership and industry issues for banks and social media companies.
The Dow Jones Industrial Average (-2.8%), Nasdaq Composite (-2.6%) and Russell 2000 (-2.4%) also fell by more than 2.0%.
All 11 sectors of the S&P 500 closed in the negative zone.
The banks were pressured by the Fed's decision to require them to suspend the share buyback and dividend caps in the third quarter.
Also from the negative news is the reluctance of many companies to place their advertising on the FB. Naturally, the company's shares were marked by decline.
This week, we will look at reports on consumer confidence and the number of jobs.
I expect a storm from the volotilities, especially since this working week in the US will be short.
So, in the end, the summary for the beginning of the week: I expect the market to fall. I'm very cautious about longs. I will give priority to short signals.
When trading inside the day, we pay special attention to the SPY behavior.
Now lets see the Visa. This is first candidate to short.
What we see on the chart:
1. A strong mirror level, formed back in December 2019.
2. The resistance level has become a support level.
3. From May 18th to June 9th, we were going up, however we could not consolidate above 200. The strong short player dropped the price to the support level.
4. On the 11th, 12th, 13th and 25th the shorts player tried to break through this level.
5. We are watching a series of retests.
6. The last trading session was closed under the low
7. You can see that the short player has gained position. I expect a break-down level.
I recommend to enter the short strictly according to your trading strategy.
交易结束：到达目标