Market Prep: Week of May 9, 2022

Happy Mother's Day! It's time again to dig into the charts and start planning for the week ahead in the markets. As our Traderade Family continuously grows, I like to step back from time to time and remind everyone what the purpose of this Weekly Market Prep is and why I structure it the way I do. The vast majority of the time this post will be solely focused on the S&P500, specifically ES (the S&P500 Futures contract). Why? Because I believe the S&P500 represents the best overall gage of market activity and considering the overwhelming correlation between most big market cap stocks and the S&P500, it's more efficient to study and analyze ES_F (the front contract) rather than hundreds of correlated charts. Occasionally I will provide thoughts on the Nasdaq (NQ) or the Russell (RTY), but when the market is as volatile as it is now I prefer to focus on ES which is my "bread n' butter" for day trading/swing trading. It's also important to understand this Weekly Market Prep is simply my personal observations and as a day trader I'm not interested in "predicting" which way the market will go; however, I am interested in finding likely levels for breakout momentum trades (long or short) and places where I expect the market to have a reaction (i.e. be forced to make a decision up, down, or stall). So you won't find any magic crystal balls here, I will never claim to have one; I'm simply a day trader looking for trades where the odds will be tipped slightly in my favor. With that said, welcome everyone...let's dig in!

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