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Will The Market Pick A Direction On Monday?

ByMichele Schneider
Published 04/15/2022, 12:23 AM
Updated 07/09/2023, 06:31 AM

On Wednesday, we questioned if the stock market was setting a trap for traders by having a strong close for the day near resistance areas. Then on Thursday, the market reversed, closing down on the day. Maybe we were onto something?

We will wait through the long weekend to see if the indices continue lower. With such a choppy market, we need to stay on our toes as we’ve seen the indices flip back and forth.

When the indices are tough to read, it can help to watch other symbols like High Yield Corporate Debt (NYSE:JNK) and S&P 500 VIX Short-term Futures (NYSE:VXX).JNK and VXX daily chart.

JNK shows us investors' appetite for risk while the VXX shows short-term volatility in the market. More importantly, these symbols are trading near pivotal price levels that can give us clarity on the market come Monday.

In the above chart, we can see that VXX is holding over both its 50 and 200-Day moving average. If the market is looking to break lower, this will be ready for a move higher on Monday. However, if we see more hesitation or a rally across the board, VXX should break its $24 support area.

On the other side, while JNK is looking heavy, it is still holding over its recent low of $99.14 and support from 3/14 around $99.43. Watching both can give us a clear idea of what is happening based on each breaking or holding these price levels come Monday.

ETF Summary

  • S&P 500 (SPY) 440 pivotal.
  • Russell 2000 (IWM) Failed to clear 201.
  • DIA 343 pivotal.
  • QQQ 338 minor support.
  • KRE (Regional Banks) 66.85 to clear.
  • SMH (Semiconductors) 237 support.
  • IYT (Transportation) Watch to stay over 243.
  • IBB (Biotechnology) 128 support.
  • XRT (Retail) Needs to clear 77.14 and hold.
  • GLD (Gold) Like this to hold over 181.
  • USO (oil) 78.70 to hold.
  • DBA (Agriculture) 22.39 to hold.
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Latest comments

I'm new here how can i start work with u people here
Monday might be a shocker. Most see a rally while i aee a complete breakdown. 3900 on SPX in 3 to 5 trading days. Monday sets the stage and direction.
What the??? with the ads??? Sophia Juan, Adam Roy, this belongs to real investors and readers. Take your scams elsewhere!
what
I don’t even know why say anything when you don’t have anything to say.
I am interested in this I have not heard of it before? When the indices are tough to read, it can help to watch other symbols like High Yield Corporate Debt (NYSE:JNK)
So the market may either go higher or lower. Very insightful, thanks!
What do you her to do predict the future? Anyone who does is a fruad and end up guessing right its a 50/50 everytime
Monday will move the market up for at least part of the day to trap new bagholders
the market. lol
Sure what makes money online transactions
Down is the trend and Fed keeps printing credit! Orinting credit at same rate as last november, but pridictably the Fed lied about transitory inflation and now lying about unloading the balance sheet ( but tbey have no choice). Michael Bury let the cat out of the bag a few days ago before he deleted the tweet …basically, the fed does not care about inflation, but need to create buffer to pump the markets by unloading the balance sheet ! In other wordstbe Fed is low on treauries to buy from the banks!! All hell is coming !!
it slows printing, things go down
People sometimes say the negative news is baked in. This is supposed to mean the full downstream effects have been reflected in current prices. I do NOT think this is true these days. We get past the bad news announcement and act as if just making the announcement is enough for it to be considered “baked in.”
covid was bullish obviously duh
Yes, with fed rate dropped to zero snd stimulus. Yes it was
Fundamentals also saying same thing too. and with central banks in a rate hike cycle trying to fight inflation, we are heading down. some investors are still in denial but there is more pain coming up ahead.
1929, 2001,2008 and everything else the Fed broke
I strongly believe the bear market is in progress now. since the turning on the charts since November last year. what we have right now are rallies in a bear market rallying to drop even lower.
thanks Michele, I'm not sure about the short team move, but the long term is much clearer and suggests that higher interest rates, tapering and inflation will move this market down
productivity decreased and it went up. needs to fix that
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