What's going on moon gang, my name is matt and boy. Oh boy did the stock market have a day, and i definitely don't mean that in a good way in this video i'll be diving into what in the world is going on in the market and also be doing a technical breakdown of neil neil is in a Pretty unique situation, because in the world of electric vehicle stocks, it is by far the best performer in the month of october. In fact, most of its competition is down by quite a bit, and neo stock is actually still in the green. But before i get into all that, if you're new to the channel don't forget to join the moon gang by hitting the subscribe button, my goal is to hit 5 000 subscribers by the end of this year and your help with that would be truly appreciated.

Also, it would be great if you could drop a like, because it lets me know that you enjoy this type of content, and it also really helps with getting this video in front of other people who may be interested. And now that i got that out of the way, let's get started, the stock market had a pretty brutal sell-off today, and here are just some of the headlines that i saw dow trades 800 points lower in the final hour as cases and election concerns rise. Stocks sell off sharply as cases soar and dow drops 800 points on mounting concerns over the virus and global economic recovery, and on top of that, i just received an alert that france is now in a nationwide. Lockdown things are not looking good concern for both the global economy and market is rising because the virus cases don't seem to be getting much better worldwide.

There's almost 44 million and in the u.s there's almost 9 million, with over 200 000 dead and, as you can see from these two graphs, they are not trending in a desirable direction. When you combine the fear surrounding the virus, the economic slowdown and the increase in volatility because of the u.s presidential election, it's not that big of a surprise that the market had a sell-off to get a better game plan moving forward, let's dive into the charts. So we can identify the upcoming levels of support. This is the daily chart for the s p 500, which trades under the etf spy.

As of the most recent market, close it's just under 327 dollars over the past week, it's down 4.4 percent over the past month. It's down 1.4 percent and over the past three months, it's actually up 1.1. But since the most recent high on october 12th, the s p 500 has had a brutal sell-off of 7.3 percent. As you can see over the past three training days, the market has had no issues slicing through these two supports one at 342 and the other at 3 31..

The next support would be at 320, which would be an additional decline of 2. If the bull camp doesn't make a stand there, we would then be looking at the next support of 312, which would be a decline of 4.5 percent, and if the market falls below that, we would then be looking at the psychological level of 300, which would be A decline of 8 in my previous market update videos. I discussed two different abcd patterns, one bearish and one bullish. As things currently stand, it looks like the bearish.

One will become a reality to be more specific about what i'm saying. The pattern is exactly this: a b c and then d is being made right now and the golden question is: how far will it fall? I'm really hoping that the market bounces off of this support at 320, because if it doesn't, we would have both a lower high and a lower low, and then that would invalidate the overall bullish uptrend that started in march. I do find it worrisome that the market so easily dropped through this support at 331, but it did catch itself at 326, which was previous resistance. At the end of july, there is always a chance that the s p 500 could bounce off.

Of this resistance turn support, but it is a rather weak support and, i think, there's a greater likelihood of us testing. 320.. Let me quickly show you one tool that you could use to make better investment decisions during these volatile times on the screen. Now is the vix, this measures, the volatility in the s p 500, which is essentially the overall market, the vix and the spy tend to move in opposite directions, as one goes up, the other comes down and vice versa.

As a quick example, when the market was selling off between february and march, the vix was spiking by quite a bit to be fair. This is a pretty incredible move, but the vix has been going up once again over the past week. It's up 40. Over the past month, it's up 53 and over the past three months, it's up 62, with today's market sell-off the vix easily broke through the previous resistance at 38., when the pain of today ended.

It was just over 40, which was also the high from early may. In my opinion, the vix could continue to rise to 44 or maybe even 48. This move would be accompanied by a drop in the overall market. Now, obviously i don't want this to happen because it would most likely mean that the virus cases are getting worse and a lot of people, myself included, would lose money in the market.

Now i don't have a crystal ball, so i can't tell you the future, but i do know that you could use the vix as a tool to monitor the internals of the market and make better investment decisions alrighty. Let's switch gears to neo, which has been able to hold relatively strong during all this craziness. Today's market sell-off of 3.4 also had a big impact on the ev sector. Neo was down 3 tesla dropped, four percent highly on was down.

Six percent workhorse dropped. Three percent and lordstown motors took the incredible hit of 15. With that being said, though, these bottom three are actually down even more in the month of october, tesla is essentially break even and neo is positive. Since october 1st neo is actually up.

30 percent, as things currently stand, it's safe to say that neo has been the leader of the pack in the month of october. Over the past three months, knee was up 125 over the past six months, it's up over 700 and from the start of 2020. Until now it's up 584 percent now i should probably clarify one thing: i'm in no way saying that neo is the most fundamentally sound eevee stock. In fact, from 2016 to 2019, the company has been operating at a loss and the same could be said about the first two quarters in 2020.

I personally consider neo to be a speculative play and the reason that it's been doing well in the month of october is twofold. First, it was announced in mid-october that neo had been doing extremely well with their vehicle deliveries. This prompted a handful of analysts to raise their price targets and the stock quickly followed, and second new is based in china, which means it's not operating under the same environment as tesla highly on workhorse and lordstown motors. This could be good or bad, and recently it's been a benefit to the company's stock price.

One direct benefit of being based in china, though, is that the market is absolutely massive and electric vehicles are becoming pretty popular as long as neo can handle the competition, and nothing weird happens politically between the us and china. I think that the company has an extremely bright future at the time that i'm making this video neo is trading at 27.50, which means that it is seven percent away from the closest support at 25.5, and it is seven percent away from the all-time high and closes Resistance at 29.3 - personally, i don't own neo yet - and i wouldn't invest at this level, because if the support at 25.5 gives we could fall to this trend line and then, if that doesn't hold, we would be looking at 22.5. For my personal trading style, i would prefer to see the stock closer to a level of support, or i would like to see more consolidation and then i could take advantage of the eventual breakout. Until then, i plan on sitting on my hands and honestly, i don't mind, being risk off when there's so much volatility in the market in terms of a future prediction.

I think that neo stock has a chance of hitting 30 by the end of this year, and i don't think that 50 is out of question. In the year 2021, we may be seeing a nice bullish upswing in the near future, because neo's next earnings announcement is on november 10th, depending on how good their deliveries are and where they set their future guidance at neo stock might be crossing that 30 mark. Before we know it, as things continue to develop both fundamentally and technically, with neo and the overall market i'll make sure to keep you updated in future videos so make sure you have your notifications turned on between the economic slowdown, a second wave of the virus and The presidential election i'm expecting some serious market volatility in the coming days, so please be prepared. Obviously, though these are my own opinions, so make sure to do your own research.

If you enjoyed this video, it would be greatly appreciated if you could drop a like and don't forget, to join the moon gang by hitting the subscribe button and as a quick side note if you're interested in the charting software that i use there's a link to A free 30-day trial in the description of this video thanks for watching and until next time best of luck in the markets. You.