Hey everyone, it’s Rob. Welcome to the market update for the week of August 1st, 2022. Boy, it’s going by fast, isn’t it. So here’s the S and P 500. We’re closed up on Friday, which we are here on the 29th, and what a move we made. I wanna actually go back and look at the entire week, talk a little bit about what it has done through the week. 1, 2, 3, 4, 5, okay. Five days back. So that’s what we’re looking at, that little doji. So last week we had this nice breakout of the .618. We closed up at the 4,000 level. We failed on Thursday, went right back to where we came, that was Friday rather. And then Friday, we went back to where we came and then Monday we had a doji pattern.
It wasn’t looking good. We got a rollover on the S and P 500. We had this rollover happen then on Tuesday, and then Wednesday, we had a big push right back up through that 4,000 level, which was great. So fib watchers are watching this and realizing what’s happening there. We get the 8 crossing up through the 21, I mean, through the 55. And we see the strength in that candle. Big, big, big push in that candle.
The next day, Thursday, we get another tremendous push to the upside. Let me go and grab a color, a different on this one. Let’s use blue. Right? So we get an amazing push up on this day. Once again, breaking through that next fib level. And then today, no backing down at all. We’re up yet again, another 57.86 cents, almost 60 points on the S and P 500 once again. Phenomenal move. Right? Well, with all that being said, does that mean we’re bullish now? Hold on. Some good news came out, good earnings came out. I went through this in my pre-market picks, right? So that was, you know, great for that, you know, as far as Amazon and Microsoft, and, you know, just some of these companies that are doing amazing over the last couple of days, right. Google and so forth. And the likes. Well, we get this great move to the upside, but we really need to step back. See, I am all the way up here. I’m in position one, hands on the keyboard, ready to trade. I need you back here. I mean, I was in position three up here. Sorry about that. I need you all the way back here in position one.
What does that mean? You’re reviewing the market. You’re not on top of it as if you’re all ready tp pounce. So we just stepped this back a little bit. Okay. Now we can see all kinds of stuff that’s happened before, right? Like what kind of stuff, Rob? Well, like this dreaded box of neutrality that happened right about where we are now. That’s about where, where the dreaded box of neutrality was, uh, give or take, you know, with me free hand drawing on a, with a mouse. But where that candle is definitely inside of that box. If I put my mouse on the bottom of it, of the bottom of the box and you follow it across to today’s candle, you see we’re well inside of that candle – that, that rectangle. So all of that being said, we definitely have our one line of contend with, but what’s even more important is the 4181 fin level.
And that’s, what’s sitting right there. If you’re not familiar with that, if you take a Fibonacci number series, and if I just go ahead and start up, uh, let’s just say notepad for an example. Right? If you take one plus one, um, it’s actually not one plus one, it’s zero plus one. Right. And that’s going to give you one, right. And then we’re gonna add the next two numbers up. We’re gonna add the second number, the one and the answer. Right? So then one plus one equals two, two plus one equals three. Nope. Wrong way around. Sorry. Right. So you’ve got one plus one equals two. Okay.
And then it is one plus two equals three. There we go. Then two plus three equals five and so on and so on. And so on, you keep doing this and you wind up with 41 81, which is a key Fib level that is utilized for now on the S and P 500. Right? So, and you can do this on Excel really quickly, quick formulas. You’ll get all of the answers, you know, in seconds, right. By doing it that way. But we’re looking at that 4181 is a major, major resistance level right now. And we’ve gotta be cognizant of that.
So for me to truly become into a bull market, we’re bullish right now, but we’re not in a bull market to truly get back to a bull market. I need two things to happen. A I need the moving averages to be in the right order, the eight, which is the pink line to be on top the green line, the 21 to be in the middle, the brown line, the 55 to be on the bottom.
Don’t worry about the 5 moving average that’s used for a whole separate purpose here. Right? I need that to happen. And I need it to close a retest and bounce might become a breakout. We might not get a retest, but I need to get above that 4181 with confidence. And really, I wanna see it above the 4,200 ideally retest and bounce. That would be a great setup to say, yes, see what happened here? Bears, we broke above your 4181. We went to 4,200. We pulled back and we bounced, Ugh! We’re in force now. Right. We’re taking over at least for the time being right. That to me is those two things what will help me to understand, yes, this truly is what I’m looking for with the bull market. All right. So there you have it. Folks stay liquid and I’m not talking about cash flow, right?
Stay liquid, meaning be flexible in the market that you can maneuver if things shift around, have a great trading week and I will see all of you at our next update. Take care of folks here, then. Bye.