We don’t have much Federal Reserve data but we do have a lot of earnings on deck… The trillion-dollar question is whether the Nasdaq and Dow have enough strength to continue moving higher.
Why is that a big question? Because they’re both sitting right on their respective 50-day moving averages. So today will be a big step toward figuring out whether or not the market has more steam left, or if it’s ready to pull back.
The Dow is a little weaker than I would like to see. Whenever you see divergence between the Dow and Nasdaq, you have to ask yourself which one is going to take over.
More often than not, you’ll see a battle between blue chips and tech stocks. Usually by the end of the day, you’ll see a clear trend one way or the other, and what we’re seeing this morning is what I expected to see Monday, and vice versa.
One downside of this battle is the S&P 500 (SPY) is often flat when the other two are battling. And this of course leads to lower-probability day trading because half of it’s being pulled down while the other half is being pulled up.
I’ll cover all that and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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P.S. It’s Almost Time for My Big Picture 2024 Presentation
If you missed us yesterday, we had a gangbuster session with record attendance for my “Big Picture 2024” event…
And I can’t wait to do it all over again at 1 p.m. ET TODAY, May 7!
I’ll show everyone my top predictions for the rest of the year, and how to trade the incoming election volatility… We’re going to cover interest rates, oil, gold, crypto… you name it!
I’m also going to show everyone how I track institutional buying and selling in real time, and how I’ve used this information to rack up a near-96% win rate with a group of over 800 traders!
And odds are I’ll have a brand-new list of longs and shorts for everyone in attendance!
