We’Ll also be talking about technical analysis levels for the nasdaq s. P 500 amc, tesla, bitcoin gold and more yesterday we saw the rise of the dollar index as well as some seriously wild springs, starting to affect wall street in a negative way are the bears back in the market stay tuned to find out more so let’s begin. Our recap of the june 3rd 2021 markets and the best way to do that, is to have a look at the heat map of the s p, 500 and clearly you will see red across the technology sectors, tesla leading 5.33 down breaking past. A very key support line that we’ll be talking about shortly, also semiconductors, all down, except for nvidia, which continues to rise, and, of course, then we’ve got the fang stocks all down throughout the session with fresh concerns, maybe due to the squeezes that are going on the Markets, growth, inflation, who knows, but generally speaking, they are starting to look a little bit. Bearish here. Market started very red in the morning, recouped almost to positives on some of the indices and then, of course, by the end of the day, a little bit of a sell off occurred and the big swings were always going to be in the squeeze stocks, amc and Other swing stocks such as these ones – that, of course, are being squeezed at the moment. They moved 30 40 on the day up and down all around there were some serious, crazy trades in those sessions.
Now let’s take a look here at the actual sectors themselves. The main sectors, all the defensive ones, utilities, consumer, staples and healthcare – were up that makes sense when you have fear in the market you’re going to see those sectors do better and, of course, growth sectors, xly, consumer, discretionary technology and communications. They were all down it’s a perfect normal case for a bit of a bearish day that went through let’s, get stuck into the technical analysis and straight away. We’Ll start here with the fear index or the vix i’ve, just quickly put on two lines. Around 16 seems to be big buying here for the vix and, of course, 20 is the key number if 20 gets bounced above. We expect a big spike out as per unusual and that to be accompanied by a very serious cross and we’ll talk to you about which cross we think is going to cause this vix to spike out it’s, going to be on the s p. 500. That’S going to do it so it’s a very interesting level here for the fear now with fear what happens generally, we start to see recovery in the us dollar and i’ll. Tell you what yesterday’s session was a classic case of some really hot trading. If you know what you’re doing now, it’s so aggressive, because we’ve got non farm payrolls coming up, but take a look at this daily here now, if you’re a bit of a crazy cat and you’re.
Looking at these types of markets, you’ll notice that we had rejections so big pin bar shooting star rejection, we had a big rejection here and then, of course, we saw it get cleaned above now, there’s two ways to trade. This you’ll notice. I put this line through 1920.. Basically, if the dollar index weakens now, we expect considering it’s formed a full accumulation down here. We expect buying pressure off this level, there’s a few reasons why one of them is going to be a trend line. That’S been going all the way from the top has now been completely smashed and broken. You can see it here. This trend line’s been smashed and broken. So now we have this level of accumulation. I think it looks best on those two hour and four hour charts. Probably the four hour looks the best let’s, bring it back over to the four hour here and see how there was no closures above the 90 20 zone. So now that we’ve closed above let’s say on the friday session, the dollar index weakens. Do you think there’s going to be buyers here? I do because you’ve got resistance resistance, resistance, resistance, becoming support, a classic case of what we call role reversal in the market structure. What a great zone and we’ll be watching this one together, hopefully during the non farm, payrolls event, so make sure you subscribe and come and join us one and a half hours before new york open.
This is going to be a big doozy. I think now that’s led to some massive sell offs in gold, and we talked about the synergies. We talked about the levels and unfortunately we were correct that as soon as that 1890 zone got broken below it caused a massive flash sell off throughout gold and silver, and you know what it is, what it is, but take a look at this good news for Gold traders is, if you’re still in it, for whatever reason and you didn’t have stop losses in place or you didn’t have kind of like any positions in there. Look at this trend line, one two touches perfect trend line on the way up and it’s just hit it, so how it interacts with this zone is going to be very, very important now, if we have a look at yesterday’s trade, see here this coiling effect, and We won’t go too much into it, but this spring, like effect, is often what happens when a market is deciding whether it can get through zone. We actually saw it in tesla as well, so we’ll talk about it there a little bit more, but resistance resistance, support, support, support support. The community was all over this. We made a lower high here. We knew that there was weakening in gold. We knew that we started have to be concerned and, of course, once it got through here, it was all over and the inevitable move ended up happening unfortunate, but it is what it is silva same thing broke through our long term trend line here broke through the 27.
50 could have reversed today sure but it’s going to be on gold that’s telling it i’m thinking with the silver chart it’s, so messy that it might be easy, actually analyzing the gold chart making decisions on that and then, if you want to take silver long, you Take silver long, but you do it off the gold chart. Sometimes this happens with these commodities and that’s one of the best ways that i like to trade. It speaking of commodities let’s go over to u.s oil, so u.s oil broke out two hour 20s. Here very nice, i’m still incredibly bullish for now for u.s oil, and i think the u.s oil might come down to this 50 exponential on the two hour you can see it was bounced off twice already through this run, and it even found some support here. So 50 exponential that puts the price at around 68 ish flat. This level will be pretty interesting to see if it does get hit today during the session and the 20 moving average getting close below is not unusual because it has happened but i’d like to see the 50 hold. Otherwise, we might see a little bit of a deeper pullback in our overall aims to get this thing to 72 and then 75 over the coming weeks. Bitcoin remains an enigma, very difficult for us to ta this. We obviously had our trend line coming through those. Last two peaks: we saw a little closure above we saw a movement to the 50, which was the only next level and then it’s sold off and it hasn’t been able to make it above that zone.
But look again i’ve talked about how it’s very hard to trade, this btc at the moment, the reason why is because there’s, a lot of fun there’s a lot of fear, there’s a lot of uncertainty, whether bitcoin is even the future anymore that’s? What people are saying and 42 000 is the only time we’re going to know that this market is back in recovery during that period. After that, all we’re doing is we’re, saying: okay, well, 36 and 34. Ish are kind of very heavy buy zones and, of course, we’ll be looking at the weekly in the daily more we’ll do this in the live session, because it’s hour by hour on the cryptocurrencies let’s move over to the stock market. Now and remember, i said before that tesla was doing something very normal and very coily around a certain level, and that was the 600 zone you’ll notice. Here it was starting to find a little bit of consolidation around 600 as it tried to make a decision, whether the bulls or the bears were going to get in control. Of course, the bears got in full control due to the nasdaq and hyperstonks getting sold off, but it’s all the way back down here, and i expect it to kind of go to 561.. If it gets through there. You guys know what’s going to happen underneath 560 500 becomes open and then underneath that 450 becomes open. Now you may disagree with me here, but i did a quick poll survey of everyone in the live chat.
Yesterday and i’d say, 80 percent of people have lost some faith in elon and therefore this is important if you lose faith in elon, is a retail community and therefore doesn’t feel as strong about tesla and that’s. Due to the doji and, of course, this btc incident, now retail traders are the champion of tesla. So if that continues and if we see weakness and people not interested in buying this and, of course, money flowing into amc and other holdings, this is a bit of a concern here for tesla it’s, been championed by retail traders they’re the ones that have really believed In the mission really believed in it, so you may still believe in it, but obviously some people have been kind of put off tesla and purchasing it as much as they were loving it a few months ago, it’s an interesting stat and something that we should consider. As maybe a five percent decision making process when you’re looking at investing in stocks like that, because it is important to know now amc guys wow what a roller coaster yesterday, all the way down all the way down to around 37. Then all the way back up to 68 then down again, you know the biggest problem here, i think, is the fact that we actually made equal highs up here and we got very, very close to the peak, so amazing trades. I mean some of these were just phenomenal. Let’S, look at this percentage that is literally 82 in one day on a five minute chart very quickly, so you want volatility.
This is the place to be looking at now where it ends around fifty dollars. Bit of a psychological zone, we take a look at it on a daily you’ll notice, how big these swings are, and the only problem with these big swings is. This is very symptomatic of uncertainty in the market and often blow off events, so this is kind of like what happened on the gme chart and i just want to show you it over here. So these were the crazy swings that we started to see and there was like a massive swing down a massive swing up, see very similar to yesterday. Then we got another squeeze very big and then we got another point now. I know that most of these amc’s have not been covered, they’re, clearly getting money from somewhere else and holding the positions. So maybe people still believe in it and that’s fine absolutely, but just be warned that this is a very highly volatile area and symptomatic of what we saw last time. So when you get through 70 that’s awesome, you get a close above 70 boom let’s go baby. All the way to 100 bucks, but at this stage, you’re still stuck in the middle of nowhere, so i’d probably be looking at the 15 minute chart and the five minute chart in the one minute chart and trying to make some informed decisions here. But it’s. Clearly, very very hard to trade. This is really if you believe in the mission and i’ve just got that resistance.
Now across the 70 69 zone, that i’ll be looking at throughout the session. We’Ll see how it trades underneath 40 that’s going to be concerned for the bears as well, because it’s like putting in a giant double top really, and then that is not what you want if you’re uh, if you’re a bull on this thing, let’s move over now To the us 100, so this was a classic textbook trade and we actually talked about it. Firstly, we had the coil, we knew it could break up when you could break down. We were optimistic that’s what you’re always going to be in the stock market. You should be more of a bull than a bear in the stock market whenever possible, but we’re also very bearish if it got through that zone – and this is a day trade like no other it’s, just the exact type of thing that you want to be getting Involved in see here on the futures support support 13610 to the 620 zone, 600 ish. We sold off before the market sold off a little bit during the market and then picked straight back up, and this is exactly what we were talking about in the live session. There’S literally we talked about this. We said the market is going to go up earlyish and then it will fall off near the end of the day because that’s, what the market likes to do and it’s going to hit this previous level of support, find resistance and sell off what a great day Trade – i hope a few of you did get that one comment down below.
If you got a bit of short action on the nas yesterday now we did hit a low again found some support, 13 400 kind of was my call at this area. If you’re going with just the distance, you would say: okay well, this has already been done, so it really depends on whether the us 500 weakens. But i tell you what, if the us 500 weakens through the zone we’ll be talking about now, i think it’s going to go even lower um. Yes, i said that i think it’s actually going to go even lower, but the u.s 500, the s p, look at it hold 4180 boys and girls. This is the zone that we’ve been looking at for all this time, we held again yesterday did very very well to make sure that this level was held up, and it just instantly was finding bounces early in the morning brought up, obviously weakening. So you can see here there is a weakening series of kind of like little peaks going through this market here, and this will be something that day traders will look at as well. If they see a closure above this they’ll say: okay let’s buy it up. If they see a closure below 4180 they’ll sell this thing down, don’t worry about that so there’s. Some two zones here that we’re going to be looking at very closely, and this is what a day trader does. This is what you’re looking at from a day to day perspective, you have to find the key zones, just like we did with gold and silver and when it breaks through it’s, going to be fireworks indeed so we’ll be watching this through the session 4180 remains the Zone just like it did a few weeks ago and you’re, probably sick of me, saying it you’re like tom, stop saying 4180 well, i have to say 4180 because it’s the zone we’re looking at guys that’s what we do as a community speaking of community come join Us over on twitter, if you’re interested, we started posting here a little bit more so we’ll continue posting on twitter posting.
Some of our thoughts join us in the discord down below 1404 already up like what 800 extra followers thanks so much guys and, of course, friday session be careful day. Traders non farm, employment change. We know this is going to be a big number. Yesterday, we saw adp non farm, employment change, look good 978k! Look at this big green number here, however, that is not necessarily what comes out on this number so fed chair pal he’s coming out a little bit sneaky a little bit early here and then, after that, the numbers coming out. We’Ll have to see how the market interprets all of this remember. The market is often a little bit scared by powell’s speeches and then the number often actually reverses that so guys stay safe out.