What's going on moon gang, i hope you're having a downright awesome day now that the first training week of march is officially in the books. I thought it could be helpful to kind of talk about what in the world is going on in the stock market. In my opinion, to really understand, what's going on in the stock market right now, you kind of have to be up to date of what's going on on the political scene, really what's going on with this stimulus package. So in this video we'll be going over the most recent updates on the stimulus package, then we'll be doing a better, more in-depth technical breakdown of the s, p, 500 and i'll also quickly be discussing apple and tesla.

But before we get into all that, don't forget to join up with the moon gang by hitting the subscribe button. You can also go over to that bell: icon click on it and switch it to always. So you don't miss any of the daily live streams or video updates such as this one. Also, if you want two free stocks, make sure to check out that link to weeble you'll get one for signing up and then another one for depositing a hundred dollars alrighty.

Let's go into the technical analysis of the s p, 500. So as a quick reminder for all of you, especially if you're new to the channel the s p 500, is an etf which stands for exchange traded fun that it's basically a basket of 500 of the biggest businesses within the us. Really because it's so many big businesses in the u.s, it can kind of thought of be thought of as like a barometer to the overall market um and really on friday march 5th. It came close to a pretty big breakdown.

I just threw some technicals up and really what i want you to look at right now. Is this blue trend line? So if you connect that low from march of 2020, when really we were at um this low and then we had another low in uh late october, we almost had an official breakdown. Let me zoom back in just so. You know the importance of really really.

What's going on and in fact let me all right um so right here we almost had a breakdown, it was looking pretty pretty negative. Honestly, it looked like we could have tested uh 368 and if it snapped below that, who knows how far it would have fallen. But right at the last second, especially if you check out this chart, it was sell-off, sell-off, sell-off and then a nice about like an incredible bounce um for those of you who are curious about why we had such a bounce in the pre-market trading. It was because of the jobs report, that's always released on the first friday of each month, um this one.

It was pretty positive. We had right here. I had this written down. The unemployment rate dropped from 6.3 percent to 6.2 percent, and it was quote unquote for the right reasons.

It wasn't because people were giving up looking for a new job, people were actually getting employed. So that's good news and 379 000 jobs were added to the economy. Um, obviously we're trending in the right direction. I really think that this overall road to recovery will be quite a long one, but i'm looking for positive trends for um.

So that's what we saw this uptick and then obviously the market sold off so really from the open to what was this um around 11 30. There was a two percent decline and then honestly, the bull stepped in and they didn't look back i'll, explain why this was negative for, like my own uh positions in a second. But there was a very abrupt three percent gain and it no doubt had to do with uh some of the updates going on with the stimulus um as of friday. It wasn't passed, but as i'm filming this on saturday march 6, we do have some positive news.

The senate has passed president biden's 1.9 trillion dollar coveted relief by a slim margin of 50 to 49. The bill, which includes checks for many americans, will now go back to the house for a separate vote before the president signs it into law. There's a big assumption that this will officially be signed into law um by next sunday march 14th. But once again those are just big assumptions.

So it's not officially passed. It has passed the senate, but it's not signed into law quite yet, and for those of you who are curious, uh, just a quick update of what you can really expect. If your family makes less than 160 000, the senate uh bill would provide direct payments worth up to 1 400 per person to families earning less than 160 k a year in individuals earning less than 80 000. If you're unemployed, the jobless will receive 300 weekly federal boost to unemployment benefits and we get those payments through september 6..

Obviously, there's a lot of other very, very important information in this article, so i'll make sure to link it in the description below. I just wanted to quickly go over those highlights and then all honestly, coming back to the stock market, it could not have come at more of a perfect time. Um. Just we it looked like it, was about to roll over and break through.

Some very very important support and right at the last second and caught itself, so moving forward into the second trading week of march. Here's what i'll personally be looking for. There is now these yellow lines, if you're new to my channel. Just so you know these yellow lines are technical areas of support and resistance.

When i say support, all i mean is a price level that the stock market or an individual stock has bounced off of and when i say resistance, it's just a price level that it's been rejected by that's what these yellow lines are they're very important because previous Support loves to act as support in the future and the same with resistance and in the world of stock training. Support can become resistance and vice versa. Resistance can become support so, for example, 385 acted as resistance um, as recently as late january resistance resistance. Then it was acting as support, so there's a good chance.

It can act as resistance when we start the trading week. Um past that uh, this blue trend line was that trend line that we were watching from last march connected to october. That's the one we almost broke down from these white trend lines, this upward, perfect channel whenever you see an upward, perfect channel like that, it's actually referred to as a bear flag. I know the naming is a bit weird, but we call it a bear flag because they commonly break downward so the overall market.

It tried to break down three separate times before and then the bull can't push it right back up to it, which is obviously a pretty good sign, but most recently, this fourth breakdown things were looking a little bit hairy, but then the stimulus we were getting some Positive developments with that so the market. Obviously this is good for the overall market, more money in the economy. So, in the short term, it's pretty good and that's why we saw such a strong retraction on the news, but anyway, coming back to what i'm looking at. I will be watching 385 and then, on top of that, we're watching this trend line um.

If we break above that, we could see a run right back up to the all-time high of 394 and, of course, that key psychological level of 400. But keep in mind that's a big if we have to get over all this resistance and if, for whatever reason, people aren't buying or feeling bullish on the stimulus news, if it we get rejected at any of these levels, the first support i'll be looking at will Come at 376 and 374. if we go below 374, please please watch 368 because below 368 we could see quite a sizable dump um one thing: i really really need to bring to your attention - and this is important in the world of technical analysis as the stock Market has gone up, we've gone from 363 378. 394.

This is all the the all-time high. I need to bring up this indicator on the bottom. Here we have the relative strength index, also known as rsi. It's one of my favorite technical indicators, and just so you know it has values of 0 to 100 and basically it just maps out bullish momentum against bearish momentum when it gets very high.

That's a lot of bullish momentum, especially over 70, and when it gets very low, especially below 30. That's a lot of bearish momentum. Now the reason i'm bringing this to your attention right now is because, as you can see, basically from january 8th all the way up to the all-time high on february 16th, the market's gone higher, but we have a little bit of divergence. The rsi hasn't.

It is a little bit weird that there's less bullish momentum and a new all-time high than previously, and this is referred to as bearish divergence and it's a common technical sign that the stock or whatever you're looking at you could use this on individual stocks on whatever Time frame you want, but it's a common technical sign that we either need to have a quick sell-off or sideways trading just so the rsi has a chance to cool off. So you can look at this as one of two ways of basically from february 16th. Until now, this might be the consolidation period. This might be all the consolidation that the market needs and we might be really preparing to rip up to a new all-time high or it could still be indicative of hey.

We might need to cool off a bit longer. Just so, you know right now the overall stock market i'm in no way ever ever calling for doomsday, but it came close to more of a let's say: call it a healthy correction. I'm not saying we're about to drop um 20. 30.

Anything like that, but it did look like we were on our way to a pretty healthy correction after such a systematic buy up in this upward channel. So these are the levels i'll be looking for and it did really blow my mind to see what we had on friday. Good jobs report, perfect selloff, perfect, buyback, absolutely crazy. So let's watch how the market reacts to 385.

If it's rejected there, we could watch 380 followed by 376 or if it breaks above that we could rip to a new all-time high, but whatever happens. I do think that we're in for an interesting week and i'll make this part pretty quick. But i know there's a lot of people interested in apple. Obviously the premier technology company, it's been showing a lot of weakness, in fact, from its all-time high on january 25th.

Excuse me um from this all-time high. Until right now it's come down 16 percent. At its peak at its valley on friday, it was down 19 as in 1, away from bearish territory, so the stimulus news definitely definitely helped this um. It looks like it found support at 120, and the way i was just talking about bearish um divergence in the rsi apple currently has some bullish divergence, which is a pretty good thing.

So if you look at this low on february 23rd, compared to the low on march 5th, obviously apple has gone lower, but the rsi has gone higher. That means that more people are buying here than they did here. That's why we call it post divergence. So now i will be looking for a breakout of this trend line.

If we get that breakout, we might see an official change of trend back upward. So that's what i'll be looking for on apple just so you know i am a long-term investor in apple. I have quite a few shares and i plan on uh riding it for really years, but i will buy more shares if we get this trendline breakout, i'm really liking this bullish divergence in the chart and now, let's quickly, go over to tesla ticker symbol tsla. We don't have that bullish divergence in the rsi.

In fact the rsi just made a new low um, but i do like we saw this breakdown of 566 and then we bounced off of this low from december, 2nd of 2020 right at 5, 40. uh. So we got that bounce and then it retracted all the way up to 600. So i own a lot of shares of tesla, and this was good for my initial position, but as a hedge against all that i ended up having buying some tesla puts expiration date march 12th.

A strike price of 550.. As of now as of the market, close, that put position is up 750 dollars for me, but as i'm filming this over the weekend, i have assumption because of the stimulus news that the entire market and all the stocks are going to gap up. So i don't think i'll be able to get out of this position for profit. If i had to guess right now, as soon as the market opens on 9 30 on monday march 8th, i think that tesla put play will be excuse.

Me will become a loser for me. Unfortunately, i was using it as a hedge of my tesla shares and really my overall just investment portfolio um. It turns out. I didn't play it.

The best i got ta honestly. I got uh too greedy a little too eager. I once i saw this breakdown of 566. I thought we were coming down to 500 in hindsight on monday morning, quarterbacking hindsight's 2020..

I obviously should have taken gains between 560 and 540.. I am 100 kicking myself for it now um. I definitely botched that play, but that's just part of the market. You know you learn you just move forward, but anyway the rsi is very, very much oversold with the positive news.

I think we will see a bounce back in tesla similar to apple. I am looking for a breakout of the trend line if you're interested in more of an in-depth breakdown of what's going on with apple tesla, and i'm also going to include palantir, make sure you check back uh for my next video, which will be coming out on Sunday march 7th so uh, if you're interested in that tune back for sure and if there's any big updates with the stimulus i'll make sure to include that. But overall i know individual. The overall stock market has been holding oddly strong individual stocks, such as apple and tesla, have been getting killed, but it is showing technical sides of bouncing.

So i just wanted to clarify my opinion to everyone, but i would love to know your thoughts. What are your thoughts on the stimulus bill? What are your thoughts on apple and tesla? Do you think this is a good time to invest, lower everyone's cost bases, or do you think, there's more downside? I would love to get your thoughts in a comment below and don't forget. If you want two free stocks sign up for weeble, you get one for signing up and then one for depositing a hundred dollars and don't forget to join up with the moon gang if you're interested in the live streams or video updates. Like this, all you have to do is hit that subscribe button.

You can also then go over to the bell: icon click on it and switch it to always. So you don't miss any of the new content and until i see you next time best of luck in the markets, you.