Hey what's going on everyone, i hope you're having an amazing day, i'm matt and i'm here to give you another quick market update in this video i'll, be covering the s: p. 500, the nasdaq 100 and the russell 2000. If you're new to the channel and you're interested in market updates, stock analysis or seasonal trade ideas hit the subscribe button and don't forget to turn on your notifications, it would also be greatly appreciated if you could hit the like button and leave a comment. All the engagement helps with getting this video in front of other people, alright, let's dive into it at first.

I thought today was going to be an exciting day, because the bears were showing a lot of strength, but the bulls ended up, pushing back and caused the market to rally in the second half of the day. The s p 500 ended up closing down just over half a percent and, as you can see, we're still in this primary wedge structure since mid-june. The market has been consolidating not only in this wedge, but also in this range, as we saw in april periods of consolidation are typically followed by nice trends. Keep in mind these trends could either be bullish or bearish as for what's going on in the market.

Right now, today's close was within this smaller wedge, so we just have to wait for it to break one way or the other to get a better idea of what that would entail. Let's switch over to the two hour chart in the first half of the trading day. The bear showed strength by pushing the market below the previous low and also below this middle trend line. But in the second half of the trading day, the bulls found support in a region established in mid-june and ended up rallying the market above the trend line before the market closed.

You should also take note that this dip was a gap fill from where the market closed. On july, 1st, as i've said before, the market loves to examine areas where the supply and demand hasn't been tested. If you're bearish, the first thing you would be looking for is the market to get below this middle trend line. Then that would set up a test of today's low if the bulls can't hold this line for a second time, there's a lot of support between 308 dollars and 306 dollars.

If this scenario were to play out, this bottom trendline could also serve as support on the flip side. If today's price action was simply a bear trap, the next area of resistance would be 3. 17. 75.

If the bulls pushed the market above that the next stop would be a test of this trend line. If the market can break above this trendline and hold it, the next target would be the high from early june, which would be 323.41 personally. I'm waiting for this market to break one way or another, so i could have more clarity and create a better trading plan. Everything i'm seeing on this chart shows that we're caught in between various support and resistance lines and the market is coiling up for its next move.

So this is the current structure in the s p: 500: etf spy. Let's take a quick look at the futures market. This is the daily chart for the s p, 500 futures market, which is why it has a similar wedge. You could tell it looked like the market was on its way to testing this bottom trend line, but it caught itself and returned to the previous resistance of 3145.

Let's move to the two hour time frame, so we could get a better idea of what's going on. Here's that resistance line - i just showed you if the bulls can push the market back above this line, there's a lot of resistance in between the region of 3170 and 3184. Not only has the market struggled to get above these levels recently now this trend line will serve as extra resistance, but if the bears do fail to protect this top resistance line, that would then set up the high from june, which is 3231.. If the bulls can't hold this line, the bears would then be looking to test today's low just above 3100, which was also the low on july 3rd, in an area of a lot of battle in mid-june.

If this line doesn't hold, there's a lot of support in between 3080 and 3060, which now includes this bottom trend line, if the bulls give this up, that would mean that the overall wedge structure would be cracked, and the next stop would be 2983. If this situation were to play out, i would bet that we would see even lower. These are the levels you should be watching in the s p 500, but as you're about to see the nasdaq 100 is a very different story. While the spy was down.

Half a percent, the q's actually closed up 0.84 percent. In fact, the market closed at this top trend line, which was a new all-time high. There's really no other way to put it tech socks have a lot of momentum and they've been absolutely on fire lately. If the cues break above this bear flag, i would expect them to continue their journey to the moon.

However, it is much more common for bear flags to be broken. The other way, i'm expecting these three trend lines to continue to serve as support and resistance until the market breaks above them or below them, and thus invalidates the channels below this bottom trend line. The next two supports would be 237, and i know this index has a lot of momentum, but i would suggest taking some of your profits off the table. My reasoning is twofold: first, the previous high from june 10th and the high of today are divergent.

The market made a new high, but the rsi reading didn't, which means that this move is losing steam. My second reason is that the other indices aren't following suit. This is the daily chart for the russell 2000 etf iwm, which closed down today, just over two percent. Not only is that a noticeable difference from where the nasdaq 100 closed, but we also closed just below this bottom trend line.

The bulls were able to catch it yesterday, but they didn't have the same luck today. If 136 can't hold that would set up 133 if the bears pushed the market below that support, it would then set up this gap fill if the bulls can't hold 125. That would then put 117 into play. Keep in mind as the russell 2000 continues to fall from level to level there's a high likelihood.

It would drag the other two indices with it, but if this was just a bear trap, i'm seeing resistance between the region of 144 and 146., of course, to make this possible. The market would have to get above this bottom trend line, which was support, but now will serve as resistance above this region. I would be watching the top trend line of this wedge. Clearly, a bullish break above that would then set up 153 in the last few market updates i've been stressing the importance of the vix.

This volatility tracker closed up 4.2 percent. Today, early on today, it looked like it was going to break out and even potentially make a run to 36.. This didn't happen when the market started to rally and caused the vix to retract, and it ended up closing at a previous low from june 23rd. This line at 29.3 served as support in june and resistance in may.

If the vix can get above this resistance, i would be watching for a run up to 36.3. There is a high likelihood that this move would be accompanied by a drop in the three major indices, but if the volatility ends up dying out, you could watch for a bounce off of 24.9 and 23.5. So there you have it. Those are all the levels i'll be watching in the market in the short term, if you enjoyed the video, let me know by hitting the like button, if you enjoyed 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, you.