Don't Get Comfortable Up Here

We got the follow through day. Day six of the attempted rally, confirmed with higher volume than the prior session. The market ripped from 6300 all the way back up to and around 6800. And now we are sitting right at one of the most critical confluence zones in the S&P 500. In today's stock market report I walk through exactly why this level is not just resistance. The JPM collar, last year's closing price, and the April expected move all converge right here. There are structural forces that can forcefully cap this market at these levels, the same way we had a roof at 7000 not long ago. Add in that we are still in the very early part of earnings season, the ten year yield has not confirmed the move, and VIX is still elevated at around 21 percent. This is not the time to go all in. I walk through the eleven S&P 500 sectors and what led this rally, why tech was not the top performer, and what the implied moves on the Magnificent Eight stocks are telling us. We also look at the correlation of the ten year yield to the S&P 500 and Nasdaq, the move index and bond volatility, and what happens if the yield snaps back higher. The bullish percent indexes across the S&P, Nasdaq, financials, and tech all built out divergences from oversold conditions and are now resolving to the upside. The NYSE McClellan Oscillator is back above 150. Market conditions are improving. That is real. But improving conditions do not mean you take your eye off the road. We are back in positive gamma above the gamma flip line near 6650. Dealers will buy dips and sell rips from here, which is a stabilizing force. But volatility of volatility is still above 110, which tells me there are still players out there hedging this market and not fully letting go. I also look at the year to date volume weighted average price on the fifteen minute chart and why it became an instant level of rejection today. The 2022 comparison is in here too. Biggest rallies happen in bear markets. We went through a correction, not a bear market. But the setup in 2022 had big bounces that looked exactly like this before the real move lower began. I am not calling for that. I am saying you need to be prepared for both sides. New reports every Monday, Wednesday, and Friday. Subscribe and turn on notifications so you do not miss the next one. 🟢 TRADE IDEAS & DISCORD: https://www.patreon.com/figuringoutmoney __________________________________________________________________________________________ 🔔 Subscribe now and never miss an update: https://www.youtube.com/c/figuringoutmoney?sub_confirmation=1 📧 For business inquiries or collaboration opportunities, please contact us at [email protected] 📈 Follow us on social media for more insights and updates: 🟢 Instagram: https://www.instagram.com/figuringoutmoney 🟢 Twitter: https://twitter.com/marketmike ______________________________________________________________________________________________ DISCLAIMER: I am not a professional investment advisor, nor do I claim to be. All my videos are for entertainment and educational purposes only. This is not trading advice. I am wrong all the time. Everything you watch on my channel is my opinion. Links included in this description might be affiliate links. If you purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel :) #Stock​market #StockMarketAnalysis #Day​Trading