Monday Setups

by | May 21, 2023

Howdy traders, it’s Matt here.

Get ready for a decisive week … 

The S&P 500 ETF Trust (NYSE: SPY) hit new highs in 2023.

And now we wait to see if it can hold the gains.

Either way … I think we’re going to have a huge week ahead of us.

We need volatility for quality set ups. And even if the market sinks lower, the decisive action is sure to inspire some big moves.

It’s starts with one of the hottest trading periods of the week.

Monday morning.

Here’s what I’m watching … 

Market Direction

A bullish run will inspire stronger spikes in the small cap sector.

Which means we’ve got to keep an eye on major indices to guage sentiment.

Right now the SPY shows a decent support around $415.

Ideally we’d like to see the price stay above that level.

Here’s a chart … 

But again, even if the price falls back down. We’ll likely still have afew opportunities to trade tomorrow.

Right now I’ve got eyes on one of Friday’s top movers … 

SunCar Technology group Inc. (NASDAQ: SDA) just announce dit completed an quisition to take a company public.

It’s a classic SPAC play.

When stocks first start trading they’re subject to high levels of volatility as investors try to get on the right side of the momentum.

Here’s a chart of the move thus far …

Keep an eye on it as the market opens and watch for any other volatile runners with news.

And if you ever get frustrated. Sign up for a live session and we can straighten things out.

I’ll see you in the next letter.