The Week Ahead: A Beginner’s Guide to Trading ES, NQ, SPY, QQQ

Welcome to a simple breakdown of what to expect in the upcoming trading week, especially for those new to the scene. Let’s dive into the key levels for ES, NQ, SPY, and QQQ, making it easier to understand where the market might head.

ES – S&P 500 Futures

Support Levels: The market finds comfort at 5094, 5080, and the previous all-time high (ATH) of 5066, with a strong base at 5053.
Resistance Levels: Look out for potential ceilings at 5108 (Thursday’s high of the day), scaling up to 5123 (ATH), and further resistances leading to an extreme of 5164.

NQ – NASDAQ 100 Futures

Support Levels: Stability zones start at 17951, dipping down to 17796, with an extreme support at 17965.
Resistance Levels: Resistance begins at 17972, climbing towards 18070, with a peak resistance (ATH from Friday) at 18143.

SPY – SPDR S&P 500 ETF

Weekly Supports: From Friday’s low of 507.10, dropping to a strong base at 495.94.
Weekly Resistance: Resistance points start at 508.50, with an extreme at 517.50.

QQQ – Invesco QQQ Trust

Weekly Supports: Begins at 435.80, with an extreme support at 424.74.
Weekly Resistance: Look for resistance starting at 437.84, with a top resistance (ATH from Friday’s high of the day) at 440.59, extending to an extreme of 448.

Strategy Insights

Short Positions: The optimal short trades are expected against Thursday’s high of 5108 and Friday’s high of 5122, aiming for initial targets of 5100-5094 and then 5080-5066 as secondary goals.
Long Positions: The best long opportunities are against the previous ATH of 5066, with primary targets at 5080-5094 and secondary targets stretching to 5108-5122.
Pivot Point: The previous ATH of 5066 serves as a pivot. Above this, the market might lean towards bullishness, whereas below signals caution, potentially leading to a drop to the 8-day exponential moving average around 5043.

What to Watch This Week

This week is packed with economic indicators like new home sales, GDP, personal consumption expenditures (PCE), unemployment claims, and the University of Michigan’s consumer sentiment index. Plus, keep an eye on a flurry of Federal Reserve speakers and bond auctions.

Notably, Walmart’s stock split takes effect on Monday, and Nvidia hovers around the $800 mark. Apple’s position at the 200-day moving average also warrants attention.

Prepare for an exciting week ahead in the markets!