12/2/2021
US equities fell 5% from the highs after fears of a new coronavirus variant emerged and the first case was recorded in the US. SPX500 is up .10% on the day at the time of writing this.
Our outlook
The new omicron variant is definitely concerning most investors right now as the US will likely have to take measures to contain it as best they can, but traders are not taking the chance with this one and cashing out right now. This sparked a decent sell off in the equities markets, but that's not to say that we could be looking at some strong setups. What we need to look out for is good news from the major vaccine producers and lifts on the travel bans which may not happen for a while. There will likely be new variants over time, so it would be infeasible to restrict travel and business indefinitely like how we did in 2020, so I think another shutdown is unlikely, but you can never be too careful.
Trade Setups
SPX500
SPX has already bounced from when I started this article to the 50 day moving average. There isn't much good news today, so we may just see consolidation between support and the moving average today. $4488 and $4433 are clean support levels for the index should price continue lower.
NAS100
The NAS100 shows similar price behavior on the 1D chart as the latest candle is nearing support in the $15,700s coupled with a rising trend line and the 50 DMA just below that. A bearish signal would come from a break under the trend line, so if price holds above that, it may suggest a decent long setup.
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Hi, I’m Nick! I am the founder of A1 Trading, market analyst, YouTuber, and creator of the EdgeFinder software tool. I caught a huge winner on USoil with the help of the EdgeFinder! In this article, I’ll walk you through my thought process behind the trade and how I found this crazy runner! Finding My […]
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