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4/3/22 – Sunday Stock Talk Write Up

What does the market have in store for us this upcoming week? What are the important support & resistance levels to be aware of? Read the Sunday Stock Talk Write Up to find out.

In this Sunday Stock Talk coming at you early on a Monday morning we have a battle of the timeframes. We are looking at a nice weekly topping tail in place right back up into prior resistance area, but the topping tail gave us a 3 bar pullback into support on the daily chart which does have the potential to hold. Will it hold and we try to rally initially and fail or will it actually hold and we play back into that weekly topping tail is the real question.

Here is what I’m thinking at the moment. A rally early on in the week that doesn’t get a ton of traction and is pretty slow overall, but then rolls and rolls pretty hard into the end of the week. We don’t have the same pattern across the board in the other indices where they would be holding the daily 200 moving average that this 3 bar pullback has given us, so I think that pushes us just a little more towards the daily failure side of things as opposed to it holding. That could easily change and we just start to base out up here on the daily chart in a range while we let the other markets catch up. That would mean we see some big strength out of the RTY & YM that outperform any ES moves here. I also was looking at the SPY, QQQ, IWM, DIA this morning for a different picture with regards to the numbers and it is telling me the same thing. Continued longs from here after Wednesday would get to be a bit tough given the crazy run we have had with only a couple days of rest here. It is an absolutely nothing week for earnings, and at the moment Sunday night volume in the futures is the lowest I think we have seen all year long. Keep these things in mind and check the screenshots below for that potential battle, and have a great trading week!