09/01/2018 | by Brad Ritter

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

BlogPrepare for the Trading WeekMarket 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

$TSLA daily chart.

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

$TSLA weekly chart.

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

$SPY daily chart.

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

$SPY weekly chart.

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

$FB before chart.

After

$FB after chart.

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

Long-term vs. short-term technical setup for $FB: 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.