Buyers Step In At The Gap Fill — Top Afternoon Long Setups

Each afternoon [music] real setups are broken down with entry strategies and the technical reasoning behind every trade. [music] This is today's best trade setups with Verified Investing. Welcome to today's best trade setups. My name is Benjamin Poole, head trader here at Verified Investing. So, the 10-year yield is starting to spike even more. Had a nice resistance level that had a brief pause and now we're actually above that. I'm going to identify additional resistance levels for the 10-year yield and this is all bringing the markets down a little bit and the S&P 500 went and filled that gap and now we're getting a little bit of a bounce. If we can start getting more of a pullback in the 10-year yield, the S&P 500 could start pushing a little bit higher. Let's go ahead and jump right into the charts. Here's the 10-year yield. Here was that resistance wide range red bar candle right here at 4.604. Now, we're sitting at 4.671. The next level of resistance is this pivot top right here just a little bit higher. I would actually look for a pierce of about 4.7% on the 10-year yield and that's where you're likely to start getting more of a pullback on this chart. Not only does it align with that, but if we take a fib retracement, take this pivot top here all the way down here, that's just below the 886 Fibonacci retracement. As you can see, we had a little bit of a pause, minor pause right at the 4.6 uh this excuse me, the 786 fib retracement at 4.63% got right close to it, got this pullback and now we're through that. So, that means the next level of resistance is going to be the 886 fib retracement. And just below that is a 4.7% and that's where I would look for additional resistance on the 10-year yield. The S&P 500 I gave you a level yesterday. We actually had a pretty solid bounce. I was actually anticipating it coming into this level yesterday, but it was a still strong level because it is a gap fill at $731.53. This is your line in the sand. If we can get back to this level because we've already bounced off of it one time, this is still a pretty solid level for the S&P 500. So, this is still an aggressive $731.53 for a nice scalp on the S&P 500. If it does bounce a little bit more today, I would be looking to short it at 738.61. And again, this is just a short scalp. Because we have this up something trend line that we've been monitoring right here, pivot low here, secondary hit, third hit, super vertical trend line. Here was the first real break. We tried to confirm below it yesterday. Today's closing price, if it closes in this area and fails to get it back up into this gap in the charts, we will confirm a breakdown. Doesn't necessarily mean that the the run is over. We could head back higher and hit the $750 level on the S&P 500 or the SPY. But, this would at least signal that there are a lot more bears in the spiders than there are bulls. And so, if it does get back in this level, you could always enter the trade at 750 pierce looking for a nice pullback. You're going to head down to at least 724. That's your next gap in the charts. And then, I'm eyeing this 7 uh excuse me, $697.20 level for an additional pullback level on the SPY. The QQQ, similar price action. It did get this nice drawdown yesterday. Got a nice bounce off this up something trend line. I was monitor or mentioning that this was a previous support or excuse me, resistance level. Got above, confirmed, retraced the scene of the crime, went back up, retraced it again yesterday, and that's why we got this nice bounce, pierced the $700 level. And now all of a sudden, we're trading right at the $700 level, which means that this up-sloping trend line as support uh excuse me as support is starting to weaken. My long level yesterday was $697.34. It got down there today. Now all of a sudden it's gotten a bounce. So similarly with the S&P 500, if it fills this gap at 695.05, this is where I'm looking to go long for a short scalp, even though it's already hit this level. This tells me that there are still buyers in here who are willing to bid the QQQ up. On the short side, this is a small gap at 705.61, so I would not be interested. I would look to short it at $713.29. Let's jump into the USO chart. I'd mentioned $151.26 was not only a day trade level, but a swing trade level as well. We got significantly above that. We got up to a $154 pierce, and then a decent pullback. We had news that President Trump was mentioning that all of a sudden he's no longer going to go to war with Iran, had this huge sell-off, got back down to below 150, and then now all of a sudden today in the morning, we are getting this nice bounce. Um we are up on the market or of the day. So here's what I'm looking for. I'm looking for price action to stay below 151.26. If that happens, then this move from the the lows right here at 127 to the highs of 154, this is telling me that it's we're in exhaustive state, and the buyers are starting to run out, and then all of a sudden we're going to get a nice sell-off. I would actually look for a downside target of at least 143, if not all the way back down to this 138.68 level. As this is an up-sloping trend line, uh this would be another hit and a gap in the charts. So, I've got this pivot low here, secondary hit, and I know it's through this, but because of this candle it give us a gave us a little bit more information, which is why I would take profits right here about $138.38, gap in the charts, and this up sloping trend line from the 15126 level. That would be a solid 8 and 1/2% move to the downside on the chart of USO. Now, if it starts closing above 15126 on a daily closing basis, US oil is going to continue higher, and I would stop out of the trade and look for additional resistance levels. Right now, STX we're monitoring. I did mention this $697, this high pivot point on STX. We got a nice bounce off that level. For me, now I'm actually looking for a 690, excuse me, $670 level. If we drop a little bit more, right here, 67035 is where I'd look to go long on STX in the live day trading room today. You If you're a little bit more conservative, you'd wait for the $670 level for a pierce, but because we have this prior red bar candle high, and this green bar candle high, our low, right in this area you should get a ton of support, which is why on a long play in the LDTR, $670.35 is where I'd look to get into STX. SOXX Yesterday I'd mentioned that $428, excuse me, $482.73 was that long level. Look at the bounce that it got off of this level. Oh, wait. This was the tail. It never got to that level before this huge rally to the upside. Got back above $500, and then sold off. The SOXX is actually being extremely whippy today. That was a five or four and a half percent move on the S uh SOXX because it's already filled this gap and had a decent bounce off this level. This 482.73 level is no longer valid for me. I would actually wait for this red bar candle high and you notice what else? The gap in the charts. So, this is where I'm looking to go long on the $462.02 Once we flush this support level, there isn't a ton of support until you get back down in this gap in the charts and so that's where I'd look to go long. On a short side, I still like this 507 level because it from 478 from the lows of the day, that would be a 6% move to the upside, which is why 507.11 would still be my shortable level today if it can get a nice solid bounce. Nvidia nice gap down today. We um if it does get down to $216.61 previous gap in the charts, lot of support. This is where I'd look to enter Nvidia for a day trade. So, 216.61. For those of you are a little bit more conservative, I like this $212.40 level. 47 cent level. Not only that, but if you zoom out in the charts pivot low here secondary hit this would be the third hit. If we can get right into the crux of this triangle or this wedge right here this is where I'd look to pick this up for a swing trade knowing that I could always stop out on a daily closing basis below that um that up sloping trend line and then that's where I'd look to exit. CRWD is having a nice drawdown today as well. Look at this nice gap in the charts. Had a huge run up from this gap. So, that was a 50% move. Now all of a sudden in just a few days we're down 33%. If it can get to this long level at $92, whole round number, this is where I'm looking to go long on CRV uh WV. Great gap in the charts. That's for my aggressive traders. A little bit more conservative, you would wait for $87.67. You have this pivot um pivot top right here. Previous gap in the charts. As you can see, price had respected this as resistance, got above it, and then it was support. So, on the way down, it will be nice solid support. OKLO already filled this gap. Look at the beautiful gap on the charts right here at $53.94. Because that gap is already played out, what I'm looking at, secondary gap in the charts or previous gap in the charts, all this price consolidation, resistance, resistance, resistance, try to break above, got rejected. Then we got above it and confirmed. So, this is a confirmation breakout. $50.80 or $18 is that retrace to the breakout level. So, this is where I'd like look to go long on OKLO. Now that we've already filled the gap at $53.94. If you're a little bit more aggressive, you could still look to play this level because of the 33% sell-off in just a few days. Well, you know, eight, nine trading days on OKLO, $53.94 is still an aggressive level, but for me, I'm looking for $50.18. IREN is having another sell-off today as well. Look at the move. You have this gap in the charts at $45.66. From this gap, you went up 44%. And so, now if we get back into that gap in the charts, we're down 30% on the chart of IREN. So, I still like $45.66 for the day trade, knowing I've got additional resistance at $44.24. So, if you're a little bit more conservative, you have this prior gap in the charts. Pivot top here, price consolidation before it finally decided to skip over that. Came back in, but it still tells me that there's a ton of support or price action in this area. So, there's a lot of people eyeing IREN. So, $44.24 is that a little bit less aggressive. And then you got this previous gap in the charts at 4307 for you really, really conservative traders. That's where you could look to enter it. If you like to dollar cost average, you can start at 4566. Add at 4520 4424. And then the last add would be $43.07. If it does close below that on a 15-minute closing basis, I would actually look to get out of that trade. So, a couple things we're looking for. We're actually looking for um what the price action of oil does cuz if oil starts to sell off a little bit more, the 10-year yield can start to come in a little bit more. We're going to have a nice float up in the S&P 500 and the QQQ. But with oil staying strong and the 10-year yield staying strong and the inflation numbers staying as strong as they are, we should have a continued sell-off in the S&P 500 coming pretty soon. It's actually overdue. Uh the markets just haven't caught up with these inflation data. So, that's what I have for you guys. Thank you so much for watching. Um if you guys are getting something out of this, please make sure you're liking, you're following, subscribing, and sharing with those friends so that way they can get the same market information. And um I know I don't always comment back. However, I do read all the comments and they're greatly appreciated and thanks for all the support. You guys are awesome and we'll see you guys next time in the charts. You guys have a great rest of your day. Take care. Yeah. >> [music]