Hi traders,
Licia Leslie here with your Chart of the Week.
I have to revisit the S&P 500 E-mini futures because, while the headlines look like a total disaster, the charts are telling a much more nuanced story. We just came off back-to-back days of triple-digit drops, ending the week down a massive $162.
But here is the catch: despite the "ugliness," the price action felt strangely orderly on Friday. In my latest video, I’m breaking down the technical floors and why my "gut feeling" is telling me to stay extremely nimble for Monday’s open.
The Support Levels That Matter
In Thursday's Pit Report, I called for a move down to 6444.50. I didn’t expect us to blast through it in a single day, but we did.
- The New Floor: I have much higher conviction in the 6359.75 level. This is the area where I expect to see real buyers step in.
- The Pitchfork Warning: For the first time, we have broken below the median line of my pitchfork. If the momentum doesn't shift, the bottom of the channel at 6307.75 is our next stop by next Thursday's expiration.
The Monday Morning Retest
Don't be surprised if we see a "relief" pop early Monday. It is very common for the market to open higher to test old support (now resistance) before deciding whether to carry on with the sell-off.
The "1,000 Point" Wildcard
I was joking in the trader’s chat that I feel like we could be up 1,000 points on Monday just because of how structured this drop has been. While that’s an exaggeration, it highlights a key point: When a sell-off feels this "clean," a violent snap-back is always a possibility.
In this environment, long-term "buy and hold" is painful. Shorter-term, high-probability trades are the only way to navigate this volatility. Watch the full video to see the exact levels I’m using to stay nimble.
Click here to watch the full S&P 500 Technical Analysis!
As always, please like, subscribe, and leave a comment with a stock you'd like me to analyze. Let's go out there and make some money!
Have a wonderful weekend,