New Trades Are Triggering While S&P Needs to Reclaim Key Level

Here are the levels to watch now!

Technical Edge — 

• NYSE Breadth: 57% Upside Volume 

• NASDAQ Breadth: 50% Upside Volume 

• VIX: ~$23.75

Game Plan: S&P, Nasdaq, Oil, OXY, PEP, Utilities

Three straight down days later and we’re still waiting for the S&P to reclaim support. The question is, will the low-volume rally unravel here or will the bulls step up? 

Obviously there is some chopping and hesitancy ahead of the Fed’s Jackson Hole event and that may continue going forward. 

Yesterday, we gave a midday update on a couple of trades to watch, one of which triggered already. 

S&P 500 — ES

“From here, I want to see if we can get a bounce going and how strong it is if we get it. Basically, I want to know if 4170 to 4200 will be resistance or if the bulls can reclaim it.”

Yesterday’s high was 4161.75, but it’s something to note as this prior support level is not being reclaimed. 

This is pretty straightforward: I want to see the ES reclaim the 4170 area and the 21-day moving average. If we can go daily-up today over 4161.75, then 4170 is up next. 

A move above that level without reversing could give bulls a test of 4200 and the 10-day. As for VWAP traders, check this chart out: 

We have three VWAPs drawn in: One from the recent high, one from the low and one based on volume. Those come into play at 4085, 4020 and 3980, respectively. 

The last of those — the VWAP from the 2022 low — also comes into play near the 50-day moving average. I would keep these measures in mind. If we lose 4018 — yesterday’s low — then we could see 4100, then the first of the VWAP measures near 4080. 

S&P 500 — SPY