Today, we made a checklist of the most important charts in the market.
We came up with about 20 key levels that, if broken, would suggest the end of the bull market.
Our list covers things from the major averages to crypto, and even some commodities and relative ratios.
There are so many big levels being tested right now. In many cases, they are the prior-cycle highs, which means violations will result in some nasty failed breakouts.
We’re going to track them all closely and weigh the evidence. As more and more of these levels give way, we will turn increasingly bearish.
But, for me, one chart matters so much more than the rest over the short-term. Actually let’s just call it three, since it is the same situation for all of them.
Here’s a look at the S&P 500, Nasdaq 100, and Dow Industrial Average all digging in at their VWAPs from the August lows. These are the most important stock market indexes in the world.
They are all testing crucial support and rebounding in synchrony.
We’ve seen this story before. This won’t be the first time any of these indexes are bouncing off their VWAP from the August 5th volatility spike. In the case of DIA, this will be the fourth or fifth successful test.
This has been the line in the sand for US equities since the back half of last year, and this week’s action tells us it still is.
We need to see a follow-through day tomorrow to confirm these bullish candlestick formations. That should be enough to put the market back in rally mode for now.
We dipped our toes in and got long a discretionary stock via Breakout Multiplier today. We also sold a double in some international calls we just bought yesterday. I’ve unlocked that trade, and you can read it here.
We’ll be putting more longs on if tomorrow and Friday go well.
Despite what’s been a rough month for the broader market, we’ve been selective and have posted some huge gains recently. We’re going to keep running that same playbook.
