Market Update Into 9/3: Is the Market Too Hot?

Happy Labor Day from the TrendSpider team! A prepared trader is a profitable trader, and this Monday off from the markets is a great day to get ready for the week. In this weekend’s issue, we are looking at some weakness in the overall market for the short term. Take a look at these tickers below into next week and a revisit of Facebook from last week’s blog!

Ticker #1: Tesla Inc. ($TSLA)

Short-term technical setup: daily candle

• The daily candle setup shows a doji close with the price testing support below now for the 4th time.
• There is also a gap above that needs to be filled around $330. Notice the previous gap that was created around $302 filled to the downside which created support touch #3 on the chart.

Long-term technical setup: weekly candle

• The weekly candle shows that the price continues to trade in a narrower range this year with support below around $270/share.
• If the price happened to breakout to the upside, the weekly ascending triangle resistance is around $390.

Ticker #2: SPDR S&P 500 ETF ($SPY)

Short-term technical setup: daily candle

• The daily candle continues to trade in a very steep upward channel with price nearing the channel support below on Friday. There are also two gaps below.
• If this channel support breaks, watch for a possible breakdown to the EMA (50) below which has been hit on the downside 7 times this year.

Long-term technical setup: weekly candle

• The weekly candle continues to trade in the middle of the channel with hard support below at the SMA (20).
• Overall, the market looks healthy but also cannot go straight up. Watching for consolidation around $287.50.

Ticker #3: Facebook, Inc ($FB)

Before

After

• These two images show Facebook attempting to bounce off support last week but failed to. It is now showing a potential head and shoulders into next week.

Long-term vs. short-term technical setup: 240-min candle vs. weekly candle

• The daily candle is currently trading between the SMA (20) and EMA (50) on the 240-minute candle with the price also trading right at channel support on the weekly candle.