The levels every day trader needs to have going into the week of Oct 21

SPY – The market has really been trying to break that 300 level! Support and resistance is ALL about buying and selling pressure which means when the market runs up to that 300 level, the only question is are there more sellers than buyers?

The more times a resistance level is tested the more likely it is to break because the people who took profit there the last time had to buy back in at higher prices or aren't in yet and are getting FOMO. Eventually there aren’t enough sellers at that higher price and FOMO buying / short covering begins causing price to continue higher until sellers DO step in.

So, will this be the week the market finally breaks out? Honestly, I don’t know but that’s why we make plans to follow when we trade! Like it or not, the market is always right so its best to go with the trend! These are the levels I will be watching this week to determine the market's bullish or bearish lean. If you are a day trader I highly suggest you mark your charts with these levels!

ROKU – Last week ROKU had a good run up and broke some pivotal resistance levels, however on Friday it made a big 1hr bear flag that we now must watch out for.

If 128.2 support holds I will be looking for an entry on calls to the resistance and targets marked in the chart, if on the other hand that support does not hold, I will be looking for entry on puts and watching for the breakdown.

SHOP – This is a great stock for day traders as it moves very fast and usually has a strong trend. Unfortunately for shareholders, that trend has been down lately but fortunately for us day traders it doesn’t matter 😊.

SHOP is presenting with a classic head and shoulders pattern on the 1hr chart right now, I am looking for the breakdown at 312.13 for an entry on puts, a close above 326.26 would signal reversal and make me bullish on SHOP.

Happy trading!