These Price Points Will Define The Trend This Week

Last Monday I suggested that the first day of the week was a good time to identify the markets’ key inflection points, so that you have a better chance of trading with the best trend.

By Friday of last week, the markets had pulled back to right above levels I suggested you should look for support.

As a result, this week has some very powerful inflection points.

This week the power in the analysis is in its simplicity.

The simplicity is that the high and the low of last week in both the SPY and the QQQ are at important inflection points. These points will define the strength and direction of the trend this week.

The power in these levels is in the fact that the highs are at the 200-day moving average and the lows are at the 10-day moving average.

This sets up the simple analysis for this week which is to remain bullish until last week’s lows are broken.

Additionally, if last week’s highs are broken look for a rally to $280 in the SPY and $175 in the QQQ.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily