Morning Notes – 7/26/2022

Good Morning:

• We expect another low volatility day, with the expected move at about 70 points.
• The range is projected between 3930 and 4000, much like yesterday.
• The WEM sits roughly between 3860 and 4070 for the rest of the week.
• Volatility will pick up tomorrow with the Fed Interest Rate Decision.
• Many major tech companies are also reporting this week, and we get our first look at 2nd Quarter GDP on Thursday.
• In the midst of this, the market has been in a weak rally attempt off the June 17th, Nominal 40-week cycle low.
• There is multiple time frame moving average support below the market, along with the Volatility Trigger at 3950.
• The first hurdle above is 4000, where the most option strikes and Gamma congregate.
• The second hurdle is 4070, the top of the WEM, bear channel, rally channel, and multiple time frame moving averages. There is a Fib Fireline at 4100.
• 4180 is the next obstacle, should we be lucky enough to approach that level.
• My best judgment is one more thrust to 4070, our “X” marks the spot level, and then we will see.
• However, overnight Bitcoin contagion (the Globalists are bound and determined to destroy Bitcoin), combined with negative forward guidance from Walmart after yesterday’s bell, threatens the already weak rally attempt.
• I covered the details in this morning’s recording of the live notes linked above.

A.F. Thornton