Where Are We Now?

Good morning. Jobs report coming tomorrow ahead of a long weekend. Stocks continue to slide with the market set for another move lower. Some real quick perspective on where we are, and where we could go.

For one interest rate expectations continue to grind higher. This will continue to weigh on equities. As well as all the other head winds that have yet to subside in 2022 including high energy prices, war, conflict, inflation.... and on and on and on. All in the face of a FED that has flipped 180 on its asset price perspective.

The S&P500 hit the trendline around $430 marking yet another lower high

before falling to the current low $390s.

I think we are nearing a real moment for this market perhaps as soon as tomorrow. With the trendline support/resistance looming....

A break brings the $330's for the $SPY as the next long term support point.

Seeing how we bottomed around $220 for the COVID lows, that would be a 50% move from there.

That $390 level in the short term will be key for not just the next few days, weeks, but for the rest of 2022 and early 2023. A break of $390 I believe will set the market up for fresh lows in 2022 and a move down to the low $330s' on $SPY. From there I think we could see a meaningful bottom made, if not at least a very strong buyable rally from that level.

That is all for now. Have a wonderful day. See you in the chat room.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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