Welcome ladies and gentlemen, it is Rob. Welcome to the Market Intelligence report for Tuesday, not Monday (holiday time), Tuesday, September 6th, 2022. Hope you’re having a great day. Hope it was a good trading day for you. Hope the week has been well for you as well. Markets are closed up. I’m just waiting on the S and P 500, the finalize on Omega Chartz, but we’ve got the S and P closed. Now at 39, 24 quarter, you could see this green box on the far right side. So on omega charts are at 39, 22 and a half. So quarter, so about two points off from the final close, but no matter what, we closed in a bearish bias today, right? You, you really have to take the full understanding of what’s going on in the market of what’s going on on the fibs and the chart and so forth. You need that full picture to grasp what’s happening here.

We had the dreaded box of neutrality, which matched up with the one that was back here. Look left, right? We moved up, we got a V top, good V top, we broke below the 8 here, the 21 here, we vacillated a little bit, we popped up, and right there traders like, “yes,” we’re going back up. I know tons of people throwing big money at the market, trying to get in early and KERPLUNK. Nope. “Popped my head above the trees. Nothing else to see up here, I guess I’ll go back down hard the next day no less, on this day. And then we’ve been down ever since. And as we bring it in a little bit more, and we look at what actually transpired this candle, that big candle crossing over, brought the 8 crossing down below the 21. It put us in bearish territory, not true bear, but bearish enough to take a directional trade, right?

This next candle got a continuation move down on the 8 as did here. And this candle here is where our crossover took place. Now, the 8 is the lowest moving average, which definitely gives me the ability to say “yes, I can take some swing trades, bearish swing trades.” And then we got that pop yesterday. And that was the “Ooh, you know, it looks like maybe we’re gonna go back up.” I got questions on Benzinga yesterday of, “but if I get in again early, is this the place?” And I said, “there’s no, there’s no supporting reason to say, ‘oh, we go up from here.'” That doesn’t mean it can’t bounce, but there’s nothing that says, this is the place for it to happen. Today, the gap up, and I could see all those people that asked me those questions yesterday, going, “oh, I should have bought, I should have bought when I wanted to yesterday, I’m in now.” …And we get this continuation push up and what happens?

You know, if we really bring it in, I make that a little bit bigger. We pushed up, now the 8 wasn’t all the way down where it is now until we closed. Right. But we pushed up with a confluence of what closes now as the 8 and the Fib line, which is a 50 percentile line, okay. And we pushed up, up into that area. We pushed up through the 4,000. That was the key level. Why? No rhyme or reason! There’s nothing to it except, oh, it’s that really big whole number! The 4,000, every a hundred point level is critical. You see these dot dash lines all over my screen on the S and P they’re a hundred points, 3,900, 4,000 4100, 4200 and so forth, right. Is 4,000 important? Yes, because it’s a hundred point level, not cause it’s thousand; it’s because it matches that hundred point level.

We failed with a vengeance. If we look at the intra day chart today, that failure took place newish 10 after a quarter after. So we broke that 4,000 now on the 1225 candle. And that’s where we saw the market just tank. And it continued that way for the rest of the day. Where we started the day out, down a little bit in pre-market we gapped up, we pulled back a little, right over here, we ran and then we went sideways. And then we gave back and gave back and gave back and gave back to the point that we are roughly 50 points to the downside on the S and P 500 today. That’s how harsh of a move this was today, uh, for the market.

So what’s happened now? What are we looking for? Guys right now when we look at the, the candlesticks we have here, right, we had two wicks come right down near that 3,900 level. I think that 3,900, because of the test, two days in a row, that is the level. We’ve gotta either hold that level and bounce, break above, close above the purple line, that 0.618. If we fail and break that 3,900 it’s “Katie, bar the doors!” I am all over bearish positions if that’s the case. I did a bunch of bearish trades today, AAPL, AMZN. I did covered calls today on stocks that I own like Amazon. Why wouldn’t I? I mean, I picked up 30 cents for the day on Amazon. It expired worthless, right? I sold next week at a 1.40. I think it was $1.50, 40, 50, something like that. Um, and Monday doesn’t even count Monday is a freebie because the market’s closed. Right. So right now we’re looking at that 3,900 level as the critical level for us.

We’ve gotta maintain that level and bounce to start getting some semblance of strength back in at least support. If we don’t 3,900, uh, breaking it, we’re looking at 38 64, then 3,800 and then 37, 22 is our next downside target. And that’s the full one that would give us a 100% retracement in the market if we make it back down there. All right. So there you have it, ladies and gentlemen, uh, have a great holiday weekend, uh, stay focused on the quest of becoming a great trader. Keep crushing it. And remember you’re just one trade away, take care, and I will see you next week at our next update. Bye for now.