📈 Market Rejection

Yesterday was emphatic to the downside.

Market Rejection

After a relief rally from intense selling. yesterday was our first red bar in a week.

We essentially opened at the high of the day and closed at the low of the day, rejecting key levels.

On the S&P 500, you can see that there was a confluence of levels that we rejected. They include: the 22 SMA, the 200 SMA, peak anchored VWAP, and the August 5th VWAP (recent low).

Because we knew that we had all of these levels stacking up together, you should have assumed that this would be difficult resistance to break. Yesterday’s action should not have been a surprise.

Where Do We Go Next?

While we absolutely rejected yesterday, that doesn’t mean that we can’t build back and break out of resistance levels.

With that being said, if you are long the market right now, you should understand that a gap fill at the very least is realistic if we continue to see selling.

The S&P futures show our rising wedge that we have been trading inside of. Keep an eye on this, as a break of trend could lead to accelerated selling.

I walk through what I’m seeing in the market in this video: