Hey what's going on everyone, i hope you're having a great day, i'm matt and boy we're the markets of wild ride. Today, in this video, i will be giving you a technical analysis update, and i will also cover some events and announcements that have the potential to move the markets. If you are interested in supporting this channel, the best thing you could do is share this video with a friend. You could also hit the like button.

Leave a comment and subscribe to the channel. Don't forget to turn on your notifications, so you don't miss any of the new videos before we break down the charts. There's a few things i want you to be aware of the first of which are more accommodative, actions that the fed will be taking on july 14th from 10 10 to 10 30. The fed will be purchasing just under three billion dollars worth of treasury coupons.

As you can see from this schedule, that's a large amount relative to other days. Second, there's a handful of important earnings reports that are specific to the financial sector. Some of the big ones are jpmorgan chase, wells, fargo, city and goldman sachs on the screen. Now is the daily chart for xlf which tracks the financial sector relative to the rebound in other industries.

Banking has been lagging behind since its high in february. Xlf is down just under 25. This perceived weakness makes the upcoming earnings reports that much more important. On top of that, the governor of california gavin newsom, announced that all indoor operations would be closed.

Statewide there's a good chance that if other governors follow suit with their states, this could have an adverse effect on the markets. I just wanted to quickly bring up those three things because they all have the potential to swing the markets. Alright, let's dive into the technical analysis. The first up is the s p.

500. The etf spy closed down 0.87. Today there was a lot of excitement when the markets opened because it had broken out of this primary wedge structure in a bullish fashion. Unfortunately, the party was short-lived because around 1 30 the bears hit the market pretty hard.

In fact, by the time the markets closed, it was below this middle trend line. This situation is important to note, because a failed bullish setup is bearish. If the bulls can't retake this trend line, the first support i would be watching for is at 310. below that.

Would set up this bottom trendline on the flip side, if the boost can recapture this middle trendline? That would set up another test of the top trend line if this resistance doesn't hold. That would set up 322, which is the same high from early june, to get a better idea of what's happening on a more detailed level. Here's the two hour chart this time frame does a much better job at highlighting the strength that the bear showed today in one two hour bar, they were able to push the market down 2.2 percent. This close found support where we previously saw resistance three times.

If this is given up, i would be watching 312. if the bears pushed the market below that, i would be looking for a bounce off of the 308 to 306 area. This area, which now includes the bottom trend line, has proven to be a region of high demand. If this middle trend line is quickly recaptured by the bears, i would be watching 318, which now aligns with the top trend line and two previous resistance points.

Above that i would expect the bears to put up a fight just below 323. This type of action does a great job, proving that breakouts or breakdowns don't always hold. For now. The s p 500 is still consolidating in this overall wedge.

Let's switch our attention to the nasdaq 100, which also closed down on the day. Lately, it seems like the qs only put in a red day on a rare occasion, today's close marked a decline of just over 2 percent from a charting perspective. This would now set up resistance at this top trend line and today's high of 269.79. If the bulls give up this middle trend line, i would be looking for support at 251 and below that there could potentially be support at this bottom trendline.

Here's the two-hour chart, so we can get a better idea of how things might play out in the short term. If the bulls can't get the market back up into this top channel, i would be looking for this gap. Fill the bottom of this region is close to the high from june 23rd. If the bears pushed the market below this, that would set up this bottom trend line.

I'm expecting a decent amount of demand to be found in this area because it has previously served as resistance on two occasions. If today's action was a bear trap and the bulls quickly pushed the market back into this top channel, i would expect there to be resistance at this top trend line above that would set up today's high of 269, keep in mind. As i said my weekend update video, these recent highs in the nasdaq 100 have been divergent from an rsi perspective. On top of that, it is more common for these bear flags to break downward.

This is obviously not guaranteed, but it is good to know how these structures typically play out. So we've covered the indices that track the large companies. Now, let's switch our attention to the small cap stocks. The russell 2000 iwm was unable to capture its bottom trend line and closed down 1.27 on the day.

Today's close marks its third consecutive day below this bottom trend line. This weakness, shown by the bulls, makes me think, there's a good chance. We could revisit the 136s below that would set up 133.28. I do favor this scenario, but if, by some chance, the market recaptures this bottom trend line that would set up 145.7 and, of course, above that there would be resistance at this top trend line.

Here's how things look on the two-hour time frame this chart does a good job at showing you how we've been range bound since june 17th. If the bears push the market below the bottom of this range and the bulls can't hold 133, i would expect this indicy to drag the other two down. The bull camp would be looking for. The top of this range to be broken, which would set up this trend line.

I personally don't think this is likely, but if the bears can't hold resistance here that would set up the high from early june at 153, don't forget to be monitoring volatility. Here's the daily chart for the vix, the vix gained 18 today, which was marked by a drop in the three major indices. Today's close was right at the bottom of an area of a lot of consolidation. If this resistance doesn't hold, i would expect a test of 37.

there's a high likelihood that if the vix gets to this level, we will see even more declines in the markets beyond. This would set up 44.4, which would be accompanied by even more declines. On the other hand, if the fix is rejected here, we would be looking for support at 24.9 and 23.5 as we get closer and closer to these levels. I would expect the markets to move upwards, whether you're in the boat camp or the bear camp make sure you're trading at these levels of support and resistance.

So you can optimize your risk to reward trade with a plan, so abrupt market moves like we saw today. Don't catch you off guard, let me know where you think the market's heading to next in a comment below if you enjoyed the video. Let me know by hitting the like button, if you enjoy this type of content subscribe to the channel and don't forget to turn on your notifications thanks for watching and as always best of luck in the markets.