Lately I’ve been thinking about how much weight I actually give to the broader market in my own day-to-day trading. Much of this habit came from how I “grew up” as a trader, learning under certain mentors and around a lot of stock-focused thinking. The more I keep refining my own process, the more I find myself asking: how much of this is actually useful?

So I’m considering a few changes in what I analyze and share. The more I evolve as a trader and a teacher, the more I want what I share to feel specific, practical, and easy to follow. For me, less is usually best, especially in an arena that’s always doing the most…all. by. itself. 😆

For now, let’s take a look at SPX and the downside pressure we saw this week.

SPX Review and Outlook

Last week the question was whether SPX could rotate back toward 7,000. Instead, price couldn’t hold above the 6,880 area, which had been acting as the inner divider in the broader range. Even in late February we briefly pushed above this, only to sell off again and lock in another lower high.

Since then, price has moved back down, has not been able to reclaim 6,880, and is now sitting in the lower part of the broader range near the 6,700 to 6,725 support zone.

A few things stand out on the charts here:

• On the monthly, February closed with the SRSI crossing down

• On the weekly, price continues to show rejection near the highs, with repeated upper wicks near 6,988 to 7,000 (this is the “shelf” I refer to in my trading, a place of repeated support or resistance, where price has built enough structure that can serve as a solid place to trade from)

On the daily, lower highs are visible, price is staying below 6,880, and we’re back testing the 6,700 to 6,725 area. This area shows up multiple times on the chart: volatility around that zone in October, and several touches of support (December 17, March 3, and March 6).

So while the larger timeframes are showing selling pressure from the top of the range, the daily is sitting right on a support area that buyers have defended before.

How to use these levels:

• As long as price stays below 6,880, it remains in the lower part of the range

• If 6,700 to 6,725 holds again, there is still room for a bounce back toward the moving averages

• If price starts building below that zone, then lower levels come into play

Now, even with broader pressure leaning lower, it’s still normal to see buyers step in along the way, or some names countering the general momentum. For example, with SPX down roughly 90 points on Friday, names like PLTR (+2.94%), NET (+1.51%), and BA (+4.08%) still finished the day higher.

For me, this keeps bringing the focus back to what is actually useful for the kind of trading I do. The more I refine my own process, the more I want to keep the analysis centered on what truly helps with shorter-term trading, and leave behind anything that sounds important, but doesn’t really change the outcome. That’s better for me, and it’s better for my community too.

Snapshots

Speaking of what’s relevant for the week ahead, here are two examples I’m watching, one potential downside idea and one potential upside setup.

NFLX

NFLX has rallied quickly back into the 100 area, where prior resistance sits on the daily. If price starts stalling here, this could set up a short-term retracement.

• 100 is the main area I’m watching

• A failed push through that level could start to form short-term resistance

• If momentum slows here, a pullback toward 85-90 would make sense after the recent gap up

This would be a retracement idea, not a call that the larger move is over.

AMD

AMD is starting to build a small shelf near the bottom of the recent move, which puts it on my radar for a bounce if buyers continue to hold that area.

• Price has started to stabilize after the decline

• A small base is forming underneath

• If that shelf continues to hold, there is room for an upside move from here

That’s it for today’s edition. As always, take what’s useful and discard the rest. Make it work for you!

Emanuela

P.S. If you want to go deeper into charts like these during the week, I host a Morning Market Brew inside the community. I also host bi-weekly AMAs, and workshops on different trading topics. The first 50 members can still join free through the end of the year!

Join here!