Hi Shoppers,

At our live event on Thursday night, I told you how I thought the market was at a crossroads.

I showed you how I use trendlines to help determine where a stock could be going and how to take advantage of that with an option strategy.

I also predicted a move down in the market for Friday, which we saw.

Let’s take another look at where the markets could be going.

Here is the S&P 500 (Ticker: SPX) chart:

As you can see, the SPX has been trading in a range between $4078 and $4171. 

I am looking for it to trade outside this range to make its next move.

It’s the same for SPDR S&P 500 (Ticker: SPY):

The support and resistance trend lines in SPY are $407.85 and $416.85.

My support and resistance lines in the Invesco QQQ Trust (Ticker: QQQ) are a bit wider:

They come in at $312.60 and $329.60.

Lastly, IShares Russell 2000 Index (Ticker: IWM):

Support comes in at $183.17 and resistance at $191.75.

Until these indexes trade outside these trend line levels, we will remain range bound.

It isn’t too late to join Mark and me on Tuesday at 12:15 ET for our bonus live event. Then stick around for a members-only session where we will take a deeper dive and offer up some great trade ideas.

But first …

Continue here for a look at Bitcoin, which I believe offers us a feel for market sentiment.

Bitcoin Offers Insight

As odd as it might sound, Bitcoin (Ticker:  BTCUSD) gives us some insight on the tone of the market.

It may not lead the stock market, but it is definitely an indicator of how people are feeling.

Here is the chart for Bitcoin (Ticker:  BTCUSD):

As you can see, BTC had difficulty trading outside that downward sloping trendline.

It managed to close above it on Friday and Saturday.

I am showing support for BTC at $22500 and next resistance at that recent high of $24000.

Next resistance is $25000.

Be sure to join us Tuesday! I guarantee you it will be fun and worth your time.

Thanks for Reading … See You Next Tuesday.

Licia Leslie