Ticker tape by TradingView

October 7, 2021

The Market Recovery Depends On This One Factor

Frank Cabibi

10/7/2021

Big news regarding the stock market and USD tomorrow will be the main driver for SPX500's momentum ending the week and going into the next one. NFP and unemployment rate are expected to have improved from last month slightly. But the biggest factor that could turn the market in either direction is this issue with the debt ceiling.

Our outlook

Stock market investors might already be pricing in the expectation of a beat in expectations as the SPX500 is already above the falling trend line and up nearly 1% today. Unemployment claims also beat expectations today which is another good sign for stocks. I think the market has the potential to test up in the $4420s today and possibly range up there until the NFP news tomorrow. The debt ceiling issue that can make the US default seems to be less of an issue now as debates continue. This issue is extremely important and is the main cause of these massive market swings that have been happening recently. Social security and tax refunds are some of the things that can be impacted by a default because these benefits could get delayed indefinitely.

Trade Setups

SPX500

Here is SPX500 on the 4H chart breaking above the falling trend line and nearing resistance around $4420. A close above this falling trend line will give investors some relief that price might be more stable and the downtrend won't continue. However, this could all change tomorrow, although today's jobless claims beat could indicate a lower unemployment rate.

NAS100

The Nasdaq looks strong today as well as tech stocks recover hard this morning. This index's falling trend line is quite a ways away from price right now, but it could have enough momentum to reach it in the next few trading days. Price just broke above resistance in the $14,900s but needs to close above to help ensure continued upside.

A1 Edgefinder

Try for FREE!
or get 20% off the full version using code "READER"
GET FREE VERSION

want to see what we're trading?

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
What IPEF Could Mean for US Markets

On Monday, May 23rd, US President Joe Biden unveiled a new trade pact with twelve Indo-Pacific countries called the Indo-Pacific Economic Framework (IPEF). The launching of this deal, coupled with Monday’s news that the Biden administration is considering the merits of rolling back tariffs on imports from China, saw the Dow close nearly 500 points […]

Read More
Breaking Down The SPX500 Trade

This week, I took a trade on the SPX500 that ended up being a successful one by the time it closed. We caught a 29 point move when it was all said and done, and here is the breakdown behind it. Reasons For Buying SPX500 On May 23, I sent out an alert to the […]

Read More
Why Euro Is The Biggest Winner This Week

One of the forex market's worst performers this year now has the potential to become one of the best plays in 2022. On the day, euro is up and is performing stronger against the USD than any other currency as of now. EUR/USD is up 0.36% today. Euro To "Positive Territory At The End 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
homescreensmartphone linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram