As the week is about to close, let’s recall that in last Thursday’s edition I highlighted the high odds of a spike in the Volatility Index. Traders and investors must monitor the VIX; otherwise, you are taking on far higher risk than you realize. Monitoring the VIX helps time the market much more effectively. With that said, the VIX has jumped 10.2% this week, a significant move indicating that even while indices trade choppily, vulnerability to any bearish trigger is elevated.
To be clear, I was bullish in the Weekly Compass posted on March 28th (in the middle of the panic), and by the final week of April, I documented the strength of the weekly price action observed over the first three weeks of that month, forecasting bullish continuation toward 7,638. That forecast played out with precision before the choppy price action of June and July took hold once 7,620 was reached early in June 🎯. By the end of July, I anticipated the bullish cases for Gold, Bitcoin, SpaceX, TSLA, and NFLX, and in September, my bullish calls on AMD and META also delivered double-digit gains 🎯.
My cautionary tone is driven entirely by technicals. My approach is strictly neutral: I am bullish when setups dictate it, and I advise caution when conditions warrant it. True to that neutrality, the semiconductor ETF SMH reached today the anticipated bullish target of 618, while JPM exceeded our bearish target of 334 this week, currently bouncing after approaching 325, another target based on levels modeled well in advance.
Maintaining that disciplined neutrality, let’s examine the most important chart in the market that every serious trader and investor must monitor nowadays.
Today’s Agenda
The Most Important Chart of the Week
Watchlist Tracker
Daily plan for SPX, ES=F
Daily and Weekly Levels Combined for SPX, ES=F, MU, NVDA, AMD, AVGO
Subscribe now to premium content and unlock this daily analysis, along with the weekend publications featuring key levels and setups for the week ahead. Subscribing also grants you full access to my educational library, including two eBooks on technical analysis (Essentials and Advanced), plus the ability to submit your favorite stocks every weekend to have their support and resistance levels modeled for the week ahead.