Overbought, Overextended - What's The Buzz In S&P 500 Now?

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Watch the video extracted from the WLGC session before the market open on 13 Feb 2024 below to find out the following:

  • The key support level for the Nasdaq 100
  • The directional bias for the long-term, swing, and immediate term.
  • The red flags you need to be aware of in this current market.
  • and a lot more...

Video Length: 00:03:30


Market update 14 Feb 2024

A sharp selloff happened after the live session as the market reacted to the CPI data.

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S&P 500 distribution day
S&P 500 Selloff

The magnitude and supply are slightly less than 31 Jan 2023. So far yesterday’s drop in S&P 500 (ES or SPX) did not pose a great concern yet. 4850 is a meaningful support that needs to hold.

Meanwhile, Russell 2000 (RTY) had a more severe drop, as shown below:

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Russell 2000 Key Support
Russell 2000 Key support

RTY (or IWM) failed at the key level - 2000 twice.

If it breaks below the support at 1925, the major indices like S&P 500, Nasdaq 100, and Dow Jones will likely join the sell-off as Russell 2000 leads the way down.

A commitment above 2000 is the key to broadening market breadth and the bullish momentum will return.

We will get more clues in the next few days.

The bearish analogue in S&P 500 discussed in the tweet below is still valid and could be unfolding accordingly.


Market Environment

The bullish vs. bearish setup is 812 to 27 from the screenshot of my stock screener below.

Wyckoff method stock screener
Wyckoff method stock screener

9 “low-hanging fruits” (NFLX, CYTK, etc…) trade entries setup + 12 actionable setups (AMD etc…) plus 11 “wait and hold” candidates have been discussed during the live session before the market open (BMO).

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CYTK stock buy signal
CYTK​​​​

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NFLX stock buy entry signal
NFLX

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AMD stock buy entry signal
AMD

More By This Author:

Decoding Bearish Analog And The Warning Signs You Can't Ignore
How Russell 2000’s Rise Signals Opportunities Beyond S&P 500?
Will This Game-Changing Rotation Rock The S&P 500?

Disclaimer: The information in this presentation is solely for educational purpose and should not be taken as investment advice.

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