Welcome everyone. This is Rob. Welcome to the Traders Market Intelligence Report, and it is brought to you for Monday, the week of Monday, November 7th, 2022. Hope you’re having a great day. The intelligence report is brought to you by WealthBuildersHQ.com and I wanna start off first with what’s going on with the VIX.
Now, if you follow along with it, you saw us last week, we talked about VIX. We’re in this green zone, which is this level of normality. It’s a comfort zone. You know, when I scrunch the chart down a little bit, uh, you’ll be able to see that the lower end of the green zone is down here. It starts to turn yellow. So we’re just about in the halfway point, you know, the middle third if you would, of where the VIX is, the level. So, you know, I like it a lot. 24.50. It’s a good range. If you are a buyer and a seller, if you do both, as I do, this fits in great. If you are just a buyer, you would rather have it a little bit lower; just a seller, you’d rather have it a little bit higher because it affects premiums on your options. So overall, not too bad. The biggest drop came in on Friday, a little lean off on Thursday, Friday was the kerplunk day down.
Now when we look at the S&P 500 on Friday, what the heck happened there? Well, let’s back it up actually. 1, 2, 3, 4, 5. So right there is our, close on Monday of Friday of last week. Monday we had a small gap to the downside and then we weed up. We had a higher high on that gap up. We ran right into the .618, bumped our head on ugly and failed from there. We pierced through the ice. We chipped the ice away a little bit right there, giving permission to break the downside. We gapped down, we stretched up right away looking really good early on, and then fell apart on Wednesday and broke down through that next fib level and got below all of our moving averages. We gapped down on Thursday and we chipped away at the ice. Again, Friday was not a breakthrough day to the downside. We actually had some recovery and we ran right up into the moving averages – the 8 and the 21 we’re barely, barely in that bearish bias by two points or something on the S & P, tiny on a $3,000+ index. It’s nothing in the overall scheme of things, right? So, but we did move up. We did get some, some, uh, legs behind us on Friday. Uh, we were up 50 points. You know, it’s a black candle. It gapped up, it failed all the way down to the next fib line and came back. And if you look closely, you can see we just pierced through on Friday as well.
Now I wanna share with you another way to look at this, okay? Some of you’re familiar with this tool, others are not. If you’re not, make sure you go over to TradingLikeABoss.com, which is one of our websites. It’s all of the free special offers that we have, trainings and so forth. There’s a Fibonacci training on there. Get the basics of fibs by going ahead and watching that training. We’ll leave a description in the, uh, a link in the description down below for you. All right, so if we go ahead and grab this ABC tool right here, it’s called the Fibonacci extension. Now we draw the fibs extension. We started off exactly where we started the fib that’s right here. Our fibs started at the number one. We’re gonna click on it and then you can see there’s an A there at 4119.28, which is the same price we have over to the far right. Then we’re gonna go down and we’re gonna look again this time where the fibs ended and we made our bounce, which is our B, 3584.90, slide over 3584.90. Now you’re going to draw to the highest high that we have put in since making this move down. Not this here, not here, but right here. And it will automatically snap to the high. You can’t make it move on that candle somewhere else. You can’t screw it up. The only thing you can do is, is make a mistake what candle you grab. But you can’t screw this up. We’re gonna click there.
So what did we do? We have an A, we have a B, and we have a C. And it’s just that it’s an ABC pattern in fiac. So now I want you to take notice of what happened. We have a, a pullback right here. Oh, let me back up. Let me explain to what we just did. We measured A to B and that gave us 100% of the move. We measured B to C and that gave us the bounce. And now what we’re looking for is C two D or that next level where we tend to go. All right, so I have a few different numbers, uh, drawn along in here. I have a 618 drawn out or let’s back up. I have a 2 36, which is hesitation level. That’s what we hesitate, right? That those levels at the 2 36. And I have that. And you see that that line got snapped in at the 37, 85, 68, right at that 37, 89 0 3 level.
We went right there and look what happened on Friday. We pushed into it. We’ve got the eight moving average there. We’ve got the 21 moving average there. You’ve got the fib line there and now you’ve got this ABC line there. All right, So we ran into that level, that’s number one. Number two is, you’ll notice this purple line, this 6 1 8 comes in at our zero level, right? It comes right in at zero where we ended our fibs. So critical, definitely if we do look for the move to the downside, that has extra strength there with this fib line in place. Now lastly, we’re gonna keep chugging along and chugging along and we have 3377.41, 3377.41. Let me see if I can’t find where my calculator opens up here. And actually let’s do it this way first, let me go click on the chart. I’m gonna bring this into a little bit closer, right?
Let’s hit escape for a second. Let’s go and grab this chart and let’s move it up a little bit. All right? And what I wanna see is I wanna stretch this out so I can get a really clear view of this fib number. All right? And there’s a reason for it. You’ll see in just a moment. I want to take the 3380.77, 3380.77 and I wanna subtract from it. 3377.41. That’s $3.36. I’m gonna write that down. So between the fib and the 1, 2, 3, we’ve got $3.36. Okay?
This line right here is 3382.50. So watch. 3320.50, we’re gonna subtract away from that, that 3377.41, 3377.41, right? That gives me $5.09 from the Fibonacci midpoint. It’s a major fib level and the 1, 2, 3. So now let me hit escape on this. Let’s bring that back into its regular uh, view there and let me scroll it down a little bit.
See, this is the Fibonacci midpoint. I’ve been talking about this now forever on this level, right? That I think we’re getting back to that level right now. We did put in a higher low, a higher high. This time we haven’t putting in higher lows as well. Uh, we’ll see where it goes from here. But those intersections of the lines I just drew with the existing fib, lines and the mid points that are drawn just based on math. Look how powerful Fibs are, right? Look what’s going on guys, If we break to the downside, we have a clear path. Just as I laid out in power option place today, this fib line 3711 is clearly where we head to next. If we break to the upside break out of that 3709.89 level retest and bounce, and we’re looking at 38 52 as our next upside target.
It isn’t hard. It’s common sense. Once you know what to look for, this becomes easy. With that, make it a profitable day. Stay focus on the question, becoming a great trader, Keep crushing it. And remember, remember you’re just one fib away. Take care of everybody off. See you at our next update. Bye for now.