Hey what's going on everyone, i hope you're having a great day, i'm matt, and i'm here to give you a technical analysis update on the s p 500, but before that, i'm going to quickly cover some recent economic news. To give you better context for some of the action we saw in the market today, it would be much appreciated if you could like comment and subscribe. All the engagement helps with getting youtube to promote this video to other viewers. Don't forget to turn on your notifications.

So you don't miss any of the new videos awesome before we take a look at what happened in the market today. I want to quickly discuss the most recent unemployment announcement at 8. 30 am on july, 2nd. It was reported that there was a gain of 4.8 million jobs in june.

This gain was much better than the expected increase of 2.9 million jobs. The unemployment rate fell to 11.1 percent, which was better than the 12.4 estimation. This report prompted bullish sentiment for obvious reasons, but i want to remind you where we are in the big picture. In april of this year, the economy lost just under 21 million jobs.

It's excellent news that we were able to get 4.8 million back, but we're not out of the woods yet. We still have a ways to go to the best of my knowledge. It was this report that caused the early morning run up in the s p. 500..

As you can see on this 30-minute chart, there was a massive green candle right when the report was released at 8 30 in the morning. Let me switch out to the hour chart, so you have a better understanding of the support and resistance levels, as you can see on this chart, the bears pushed the market below this trend line on june 26th. After that, the bull stepped in and reclaimed the trend line and actually pushed the market above a second trendline which brought us to today's jobs report. The report was well received, which is why we saw this gap and run above the recent resistance level at 3.

14.. Unfortunately, for the bulls, the market wasn't able to hold this resistance level, which is why, in yesterday's video, i advised taking some profits. If you were long, because this is an obvious zone of supply late in the day, the market re-tested this resistance zone. But this time it was smackdown even more swiftly and dropped 0.7 to give you a better idea of the situation we're currently dealing with and what to expect.

Next, let's take a look at the daily chart. Here you can see how the market was rejected at a resistance previously established on june 23rd, the 19th and the 17th. I want to share the three ways. I think this could reasonably play out.

The first case, which is also the bullish case, would involve the market pushing above this 314 resistance and then moving on to fill this previously established gap that would make 323 the next resistance line, which would be a gain of 2.85 percent. The next case would be more of a range-bound sideways choppy trading within this area, because of all the previously established support and resistance. The market could easily continue downward bounce off of this trend line and then re-test the resistance. If the trend line fails, we could go down to test the previous support area of 306..

This would be a decline of just under two percent. If the bull camp gives up this line of support that was established on june 19th and 22nd, there's a good chance. We could decline all the way to the previous low of 298.. This would be a decline of over four percent.

If i had to guess, i would bet that this range-bound sideways chop action is the most likely at least for the first couple days of this upcoming week. Unfortunately, i don't have a magic 8-ball, so i can't guarantee that this is the scenario we will definitively see. This is why you should be trading from level to level always try to optimize your risk to reward if you're bearish on the market, you should take a short position at recent resistance zones and cut the position if the market pushes above it and holds if you're A bull you should be taking long positions at previous support zones and cut those positions if the market falls below have a well-defined plan and keep your risk in check. Before i move on to break down the volatility chart, i want to show you something interesting on the volume indicator.

The resistance at 314 was clearly important because it was established by three separate trading days. This means that it would take quite a bit of volume to not only get over it but, more importantly, to hold it. This didn't happen, and one thing that could have tipped you off was because of how low the daily volume wants. When you have an important support or resistance line that has been tested many times, it's going to take a fair amount of volume to give it enough to either get over it or to break down through it.

This is just one small piece of the puzzle that you can use to have a better idea for where the market might head next. Another tool i like to use that gives me a better idea of. What's going on in the market is the vix which measures volatility the vix and the s? P 500 are typically inversely related. That means, as one goes up, the other goes down and vice versa.

When we saw the vix break out of this downward trend, we saw a drop in the market. More recently, we saw that the vix couldn't break above this resistance at 36.9 and it actually started to die off, which was reflected in the market by a handful of positive days. The first support i'll be paying attention to is at 23.5. If the vix bounces off of this, you can expect a decline in the s p.

500. On the other hand, if the vix breaks through the support and continues downward, you can expect the market to move upward beyond bouncing off this trend line. The next support area would be at 18.2. Once again, this is just another tool you can use to piece together.

What's going on in the market as a quick reminder, the market will be closed on july 3rd because of the holiday. I hope you have a safe and enjoyable extended weekend, thanks for watching, don't forget to hit the like button, leave a comment and subscribe to the channel. It really helps with getting this video in front of other people and, as always best of luck in the markets.