Trade Lesson and Pre-market Report for Monday, April 8
Please note:
This information (and much more) is covered extensively in twice daily reports provided to the membership.
Membership also includes access to a Live Trade Room and the nightly recording of ALL LTR activity for that day.
It also includes two weekly member webinars in which we discuss the current market condition AND how to trade it in different timeframes using different trading instruments – futures, ETFs and options.
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Bottom Line:
Last week’s highs and lows in the respective indices are important.
The price action of the Russell 2000 is critical. It is likely very bullish, at least short-term, if the RUT can close above it’s Balance Area high (see below). It is likely immediately bearish if it closes below last week’s low.
Details below and in the video.
Weekly SPX KRAs:
4200 is a critical upper level in the SPX.
Daily SPX KRAs:
Weekly NDX KRAs:
There is no objective potential “resistance” in the NDX above last week’s highs until the high of last August.
Daily NDX KRAs:
Weekly RUT KRAs:
Daily RUT KRAs:
RUT Profile
The RUT is in an increasingly mature auction.
Weekly DOW KRAs:
Daily DOW KRAs
Last week’s high and low are the immediate levels to watch.
Internals
Watch for divergences between higher price highs and lower 5-day MA of NYSE breadth.
My current interpretation of this chart is that 4200 is a formidable upside level.
30m Breadth
Also watch for divergences between higher price highs and lower breadth in the 30m timeframe.
VIX
VIX is currently at levels that have correlated to tops over the past 16 months.
US 10-yr. Notes
US debt instruments remain historically volatile.
US Dollar
No change:
Expect the Dollar to remain volatile, but favor shorts.
Gold
Favor longs.
Crude
Crude is just below a critical upper KRA and just above a massive gap.
