The overall market is approaching a key inflection point. As things currently stand, we are roughly half a percent away from testing the all-time high. If and most likely, when we get there, the market will either break out and continue to run or it will get rejected and force either consolidation or decline. What's going on moon gang, i hope you're having a great day.

My name is matt and in this video i will be giving you a brief market update, so you're, better prepared for the upcoming trading week. I will be touching on important economic announcements, key earnings reports and, at the end, i will be doing a technical breakdown of the three major indices. So you have a better idea of what levels to be watching in the short term. If you're interested in this type of finance related content join the moon gang by hitting the subscribe button, don't forget to turn on your notifications, so you don't miss any of the new videos.

Alrighty, then, now that we got that out of the way, let's get started here are the important upcoming economic announcements on tuesday august 18th at 8 30 in the morning the building permits will be released. Then, on wednesday august 19th at 2 pm, the fomc minutes will come out on thursday august 20th at 8 30. In the morning the initial jobless claims report will be released and then, on friday august 21st at 10, am the existing home sales will come out out of all these announcements. I would personally recommend paying attention to the fomc report simply because the fed has proven to have a huge influence on the overall market.

Speaking of the fed here's their buying schedule, as you can see, they're planning on buying either treasury coupons or tips every single day of the upcoming week, the most notable purchase of close to 9 billion will take place on the 18th and will start at 10 10. In the morning, in my opinion, this buying schedule isn't incredibly important, but it does serve as proof that the fed is willing to do whatever it has to to keep the credit market afloat. On more of a specific note, here are some of the key upcoming earnings reports before the market opens on monday. Jd will be reporting, they are a chinese e-commerce company who is in direct competition with alibaba, and they are reporting before the market opens on thursday.

On tuesday, both walmart and home depot will be reporting. These are important to pay attention to because it will be giving us better insights to consumer spending. The same could be said to a lesser degree, about lowe's and target which both report on wednesday and then, of course, after the market closes on wednesday. The fan favorite stock nvidia will be reporting their most recent numbers.

Now i wouldn't call this a peak earnings week by any means, but there are definitely some important companies that are worthwhile to pay attention to now. It's time for a technical analysis of the three major indices. Let's get started with the s p 500, which is tracked by the etf spy in the month of august. The s p 500 is currently up just over three percent.

What's more exciting is that the spy is extremely close to testing its all-time high, just above 339 in terms of structure up until mid-july, we were stuck in this primary wedge structure, but since then, we've been caught in this upward channel, which is also known as a Bear flag: let's zoom in a little bit, to get a better idea of the support and resistance for all of you. People in the bull camp, the first resistance would obviously come at the all-time high from the most recent close. This would represent a gain of 0.6 percent. If the bears can't defend this line, i would then be paying attention to how the market reacts to the upper end of this channel.

On the flip side, if the market is rejected here, i would then be paying attention to the region between 327 and 323. This region has served as an area of resistance on multiple occasions and also an area of consolidation, there's also a decent chance. It could align with this bottom trend line if the bull camp can't get their things together here. I would then be watching just below 320 dollars, and then this would be followed by a previous low of 312..

Both of these lines have previously served as areas of support, and this bottom one could potentially align with this third trend line. Obviously anything can happen, but in my personal opinion, i think the most likely scenario is a test of this top trend line. Now that we covered the s p 500, which is tracked by spy, let's switch gears to the nasdaq 100. The nasdaq is tracked by the etf qqq, and ever since mid-march, it's been the golden child.

Even though this tech dominant index wasn't able to post an amazing return, thus far in august, it's up 2.4 percent, it was able to hit a new all-time high on august 6th. The all-time high is currently sitting just below 275 dollars and in terms of structure similar to the s p 500. This etf is caught in a bare flag in terms of resistance. I would recommend paying attention to the obvious point of the previous high and then also this upper trend line.

If the cues are rejected in this region, you could then be looking for a retest of this bottom trend line. If the bears pushed the market below this, you could then be paying attention to 264.6. If the cues fall below this, you could watch the area of consolidation between 260 and 256, but i would personally recommend watching 251.. I like this particular line better because it has previously served as support and resistance.

In the short term, i do favor pushing to new highs, but that does come with a word of caution on the screen. Now is the relative strength index also known as the rsi? The reason i'm pointing this out is because there's divergence as the market has been pushing to new highs, the rsi has been steadily going down. This mismatch is referred to as bearish divergence, and it means that there's less buying strength going on here than there was here. This setup is commonly indicative of a future decline, or at least consolidation, but obviously that doesn't always have to happen.

I just wanted to quickly bring this to your attention, because i don't want you to have the misconception that the market internals are currently as bullish as the market actually looks. Now, let's switch gears to the russell 2000. The ticker symbol for this index is iwm and it's in charge of tracking a big group of small market cap companies relative to the s p, 500 and nasdaq 100. This particular index has been lagging behind, which really isn't that much of a surprise, because small businesses aren't doing the best right now in mid-july, iwm was able to break out of this primary wedge structure and since then it's been riding this bottom trend line upwards.

Since the start of august, the russell 2000 is up a respectable six percent. This past week, it found resistance at a previous support around 160 dollars. If the bulls are able to push the market above this, i would highly recommend paying attention to this gap phil. If this market is pushed above this untested area, you could then look for the yearly high just above 170, and just so you know the all-time high is close to 173.5.

On the flip side, if this recent rejection holds, i would look for support to be found at the high in june around 153. If the bulls don't defend this line, you could then watch the high from july at 150, but i think the most important support would come just below 145 dollars, because this line has served as support and resistance on numerous occasions. Overall, i'm currently pretty neutral on iwm. It doesn't have a great risk to reward setup and i would recommend looking for a better play.

It's also worthwhile to mention that the rsi is showing signs of bearish divergence similar to the nasdaq 100. Because of this divergence and the current hardship that smaller businesses are going through, i don't think the potential upside is worth the notable risk. Regardless of what you decide to buy and sell, you should always be placing your trades as close as possible to support and resistance. So you can optimize your risk to reward if you made it this far in the video.

I truly appreciate the support. I really hope that this brief update helps you be better prepared for the upcoming trading week. I thoroughly enjoy speaking with all of you. So if you have a suggestion recommendation or want to share your opinion on, what's going on in the market, feel free to post a comment below i'm strongly considering making a stock analysis video about nvidia because their earnings are coming up.

So, if that's something that interests you, let me know if you found value in this video. Let me know by hitting the like button and if you want to join the moon gang subscribe to the channel and don't forget to turn on your notifications, thanks for watching and until next time best of luck in the markets.