Welcome everybody. This is Rob. Welcome to the market intelligence report for Monday, August 29th, 2022. Hope you’re having a great day. You know, I’m looking at the chart right here and you’re gonna see I’ll zoom in a little bit more on it for you, as I pull in there, you’re gonna see this horizon on the line. This is actually where we close right now. We’ve still got a few more minutes yet before my Omega Chartz catches up on the SPX.

This blue rectangle is where the closing price is that horizontal line, so we we’re in the same ballpark right now of it. But I look at this black candle today, and it reminds me back of the movie Toy Story. “To infinity and beyond!” Where are we going, folks? What’s happening here? Powell open mouth, talks at Jackson hole today and what happens? (Woo. I got traders texting me all day long. That’s coming from my trading group saying “what the heck is happening?).

Powell came out, opened his mouth up about, “it’s not looking good. We’re gonna, we’re gonna stay the course. We’re gonna fight inflation. We’re not gonna back down from this thing. History tells us this the way it has to work,” which means higher interest rates for longer periods of time. Expectations of not until sometime later in 2023. Whose expectations? Some analysts out there than until later in 2023, before we start to see any easing, uh, in the interest rate hikes. Good, bad indifferent? I have no idea. Okay. All I know is we’re down 130 points on the day today. 130 somewhat points to the downside.

We are in a crushing blow. And if you look at what’s happened, you look at what transpired in the market just in the last couple of days… Let’s grab a drawing tool. Good V-bottom on our fib. We ran into the dreaded box of neutrality. We broke out. We ran all the way up to that. 4325.28 level. Great V -top in there. We pulled back and then we just, we bounced and what’s happened folks? We broke through the 8 EMA on the close here. We closed below the 21 stayed below the 21, wick went back up. Oh, we broke above everything except the 4,200. Right. But we’ve got four things of contention there to deal with. Right? First one being the, what we had right was the 21, moving average here, we’re sitting and we’re looking at breaking the 21. Then we’ve got the black line, the 4181. Then we’ve got the 4192 looks like 80 or 90. I can’t really make out the exact number there. Close enough. And then we add the 4,200 level. So one, two, we’ll call a confluence of the fib line. Three with the moving average. We’ll still just give it a three, four, right? If you have a house, and this is your first floor and second four. Okay. And this is just ceiling down here. Right? Well, if I wanna break that ceiling, usually it’s just one sheet of Sheetrock and get a hammer I could break right through. Right now, what we had while we were stuck down here is we had Sheetrock plywood, durock, tile, aluminum, whatever you wanna put up there, folks, we made it that much harder to get through.

Last evening, my wife and I were sitting out in the yard. We had a fire up going in the back, great night for it last night. And I looked at what was going on with the charts. And we closed up like 4199 on the S & P last night. And I did a video from, in front of the fire pit saying, you know, be careful there. And what happened? We popped our head above the trees. Again, we got up to that 4,200 level and Powell came out and said, nah, breakouts suck, period, the end. For me, they suck. I need a retracement, a retest and a bounce. I said this yesterday in, uh, when I did Power Option Plays. I said it yesterday when I did, um, not yesterday Power Option Plays Tuesday, Power Option Plays yesterday, when I did Benzinga, they had me on as a guest, trying to find out what the heck is going on with Jackson hole. And what I thought was gonna come from it, uh, or of it. And I say it all the time.

Folks, when you look at this chart, you’ve gotta be knowledgeable conscious of what’s taking place of what’s happening in there. All right? And today’s dramatic move based on what I’ve been saying, listen, I’m no genius. I’m not an expert. I’m not a guru. I just know what to look for the things to be conscious of, to be worried about. Listen, if, if you got a friend that keeps stealing from people and you know, that bill keeps stealing from everybody, you know, it, well, someone new comes in, they don’t know bill steals, right? Because they don’t have any experience with it. I’ve got the experience with this. That’s all it is. I, and I’m not picking up bills. Okay. Uh, I’ve got the experience with this. I have an understanding of what the market tends to do, and it’s critical that you do as well. You need to talk this out, watching this intelligence support, this coaches update every single weekend will help you dramatically for next week.

So with where we’re set to close today, and we’re there already, we closed, right, it’s right there. All right. It’s it’s already at the closing point. We’re not moving anywhere. 4057.66. But look at the day today, I mean, just a blood letting and what happened? Yesterday, we played with the 4081 and we came back. We went back up again. Didn’t quite get there. And we fell back. We broke through and trader was like, yes, we broke it. We’re going for the Gusto. We’re gonna hit a home run outta this. We’re going all the way. And today we opened flat, and we had this massive candle down right after the 10 o’clock report. We pushed back up again, just maybe a glimmer of hope. And then we said, “nah,” and we never stopped great day for the SPY to the downside, I’ll tell you what. It was amazing day, uh, to the downside. Right? If we look here, let’s bring this full screen. So there’s the two candles, the big one down the big one. Oh, the breakdown here. Right? You need one minute candles to help break it apart. But as we broke down in here, great trade. We broke again, retested and failed. Great trade yet again and yet again. So we had 1, 2, 3, 4 different moves inside of there and beyond. We went well beyond the S4 on this, to the downside. Just five plus plus plus plus plus. Okay.

So let’s go back and let’s bring this current. So a little bit concerning with what’s going on right now. What does that mean? You’ve gotta be focused on what happens this week. You cannot take a nonchalant approach and just put your hands back and say, “well, look, ah, we’ll just watch and hang out.” No, you need to know what’s going on. You’re gonna do that by focusing on it.

Where are we? To the upside? I need to break the 55 moving average, which has the confluence of the 4094.66 and the 4,100 level. That’s the only thing that gives me any confidence to the upside. If we push up to that level and fail, baby, baby bear all the way we’re gonna take bearish trades all day long. If we stay in that neutral zone between the 4,200 and a 21/8 moving average, you could take call trades. You can take put trades depending on where it is in that zone.

You may build another blue zone in there. If we break out, I need the breakout folks. It’s getting like an old record for me, right? Break the 4181. Break that 4192, right? Get past that level break the 4,200 close above retest the 4181 imbalance. I don’t need it all the way down to 4181, but just get me down somewhere below that 4,200 and bounce to show me that the bears tried and the bull said, “no we’re not letting happen this time.” Then we’ll look at bullish trades, but right now, bear is on the menu for, for the week. Folks. If we stay like this and Pal’s message carries through the weekend, we’re gonna be looking for bears trades. All right. I hope that helps make it a profitable day. Stay focused on the quest of becoming a great trader. Keep crushing it. And remember, you’re just one trade away.

Take care of everybody and I will see you next week. Bye for now.