A1 Trading Company

Ticker tape by TradingView

March 10, 2022

Indices: New Lows Incoming

Frank Cabibi

A big red flag has entered the US stock market after giving back some of yesterday's gains. Indices are broadly down as the SPX500 is down over 1%. Something happened in the stock market that could lead the benchmarks to new lows.

Death Cross Pattern

new lows

The #1 concern for the SPX500 (US500) is the death cross formation that happened in the last trading session. The blue line is the 50-day moving average and the red line is the 200-day moving average. When the 50 crosses below the the 200, it suggests that a trend reversal is about to take place.

Jobless Claims

Additionally, the US saw an unexpected rise in jobless claims this week after two weeks of beating forecasts. The report missed by 11,000 claims which is likely one of the catalysts for today's drop. On top of record-high inflation from decades ago and failed ceasefire talks, indices look like they are in bad shape right now.

Trade Setups: Calling The New Lows

new lows

Recent behavior suggests an eventual move to a level under the $4000s. However, there is also a chance that price could come up to test the top of the trend line before then. Regardless, it looks like the market is looking for a bottom, but has yet to hit clean support which would be around the $3980-90s.

new lows

A zoomed out look on the 1D gives us a better idea of where we could find the SPX end up going if the sell off continues. On the other hand, commodities seem to be cooling off for the time being, and this has been good for equities traders.

Overall, indices look like they will end up moving to the downside, but there is a lot of noise in the way. Although the week could end with higher stock prices, there are more than enough reasons for SPX to hit lower lows.

A1 Edgefinder

Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.

10% off code: 'READER'

GET ACCESS NOW

VIP discord

Trade Alerts, Strategies, Chatrooms & more!

10% off code: 'READER'

LEARN MORE
What To Expect From Today's FOMC

Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]

Read More
The Art of Not Trading

With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]

Read More
Best Currency to Buy?

As the fiscal year comes to a close, consumers will likely finish shopping for the holidays, and traders and investors will get some respite thanks to a long weekend due to bank holidays around the world. While concerns about further stock market selloffs may be lingering in the minds of some, a promising set of […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram