As of the time of this video, if you were to look at the s, p, 500 futures up even more trading as high as 70 basis points in the green, hitting another record trading as high as ’58 points. So definitely a very, very critical week ahead with a lot of fiscal stimulus on the table, with a lot of earnings that we are going to break down later in this video and there’s going to be a third and last most important technical indicator that we need To look at going into next week, because if that dips below a certain level, there’s gon na be a lot of leverage on the rally and that’s exactly what i’m gon na break down. As always, if you guys enjoyed this video, please make sure to drop a like. It really helps out with the channel also make sure that you subscribe if you’re new and hit that notification bell. So you don’t miss out on any future market updates and videos related to investing and technical breakdowns. If you’d like to subscribe and join our money, vesting community, the patreon link is going to be down in the description below we’ve got a little bit over 160 members and we’re consistently adding new people to the group. You’Ll get access to our discord. You’Ll get access to my trading view chart so this right here, which will automatically sync over every time. I make changes and, of course, get access to my growth portfolio and a lot of research and a lot of analysis on different stocks to my watch list.
So on and so forth, so again the link is gon na be down in the description below. I really do appreciate your guys support. So first things. First dao futures rise 250 points as stocks look to add to record levels. This came out today on february 15th. At around 9 00 p.m. Eastern reading, further, you guys will notice that futures contracts tied to major u.s stock indexes, so the nasdaq s p and the dow rose in extended trading monday evening after finishing a strong last week. So we had an extended weekend with the president’s day today on monday, which is why the markets were closed and futures are indicating to a really strong and a green start to the week. Reading further you’ll notice that the one of the most important technical indicators that we look at and we’ve talked about it several times in my previous videos is going to be the volatility on the s. P. 500. In other words, the vex now vixx’s drop below 20 means. Investors have grown more comfortable in the near term, because that right, there is a fear gauge in the market that’s what everybody looks at when we are trying to understand the s. P 500’s volatility you’ll notice. How lee, who is a cnbc contributor said the fear, is receding from the market and receding fear is followed by a systematic and quant funds, adding quote unquote leverage. In other words, this is a setup to see a rally which i somewhat agree with, even though we are very very overextended.
We are a little bit on the overbought side, something that we have discussed in my previous videos. These rallies can be prolonged for a very long time until we see any type of a correction or a pullback. So if these quant funds these hedge funds, basically the vix drops below 20 there’s a little bit lack of fear in the near term, which can be sometimes counterintuitive, because if people are getting complacent, if people are getting a little bit sort of comfortable with the market, That can potentially lead to us getting blindsided in the future and helps leading to a further drop or a correction in the markets. But in his words, he’s saying that this would essentially fuel a further rally in the market by quant funds. Adding quote unquote leverage into their positions, so the major averages finished last week with decent gains, even as february’s rally appeared to cool off somewhat and easing fears across wall street are likely in large part thanks to the rollout of the vaccines, economic, reopening and expectations. For more fiscal stimulus, reading further you’ll notice that he says that covet is far from defeated, but the path toward economic normalization is clearer as more vaccines that reduce hospitalizations and eliminate fatilities are approved so that’s one of the things that the stock market loves right. The stock market loves certainty, there’s. Nothing that the stock market loves. More is the fact a more predictable future in the in the markets moving forward right in the economies.
Now we already know that there’s going to be global gdp contraction around the world there’s going to be some countries like the uk that had the biggest drop in the global domestic product, but moving forward in the united states in india in the uk in china. There’S going to be a substantial expansion in 2021 when it comes to manufacturing when it comes to retail when it comes to production deliveries, so on and so forth. So moving forward that right, there is what’s subsiding the most of the fear in the market and hence giving us a much clearer picture of the markets and the economy moving forward. Even though the pandemic is nowhere near to ending now reading further you’ll notice that the treasury secretary, janet yellen’s, forceful arguments for additional stimulus, followed by federal, chair jerome powell, describing maximum employment as our national goal, helped lift bond yields, inflation expectations and oil prices last week And reading further you’ll notice that still warned that rising interest rates and an uncertain policy outlook could keep trading from growing too frothy in the near term and recommended investors stick to cyclical stocks that could see the most upside as the us economy recovers. So there’s two parts and two narratives to every story. We can paint a bearish picture and we can paint a bullish picture as well. But if you were to kind of look at the facts, the facts are that the economy is reopening. We’Ve got vaccines in play and we’ve got fiscal stimulus to push the economy and the markets even higher and add add those leverage onto those quant funds.
If the vix dips below the 20 level that’s only going to help the markets in the future, but looking at the bearish side, we also have to understand that if there’s any uncertain policy outlook from the federal chair, but the goal is for us to kind of Recover from this pandemic and for the markets to have some clarity and some certainty moving forward, you’ll notice that those so called cyclical sectors, those are the most sensitive to an economic rebound and have led to the rally in february. Energy is up more than 13 months to date, financials and materials. Also among the leading sectors in corporate news. We’Ve got a lot of earnings coming up, so we’ve got cvs, health, occidental, palantir, shopify dropbox, and some of those other companies also reporting earnings on tuesday and next week and executives from robin hood, melbourne, capital and citadel are scheduled to testify before the house financial services Committee on thursday, to go over the entire situation related to gamestop emc, the short squeeze so on and so forth. So these right here are going to be some of the earnings reports coming in next week. You guys will notice that palantir reports before the market opens on tuesday cvs health reports before the markets open on tuesday as well, then we’ve got shopify, we’ve got wix, we’ve got uh, twilio we’ve got fast, leave, we’ve got sam adams, that’s going to be boston, beer And then we’ve got hilton, we’ve also got roku walmart, fiverr and um.
The dropbox and trade desks are so are gon na, be some of the ones that i’m gon na be personally looking at very closely because all of them are gon na be on my watch list uh for earnings calls next week. So this right here is going to be my trading view platform. If you want to get access to my charts, if you want to get access to this platform, the link is going to be down in the description below so s, p. 500. Up over 68 basis points in the green as at the time of this video we are breaking out, pushing higher even more and the nasdaq futures are up. Another 66 basis points trading, almost as high as 13 900 points and starting off the week in the green. Now, of course, there’s a lot that changes in overnight trading sessions, so please this is not financial investment advice. Please always make sure that you do your proper research and analysis before investing in the markets, but the one thing that we’re going to look into today is going to be volatility on the s p 500. So the vix trading, exactly at 20, which is going to be very aligned inside this support level that we had mentioned in my previous video. So you guys will notice that coming in before the pandemic started, we were trading below 20 levels, and this right here was a significant spike in the volatility in the s p, 500, going back as far as february and march of 2020, when the wakes jumped close To over 500 percent all the way as high as trading as 85 to 90 levels, and since then, you guys will notice that we kind of died down going back as far as june 4th we spiked another time, and this right here was a re test of That support going back as far as the middle of august when we were trading as low as 20, and then we pushed up once again.
This right here is so much consolidation in between that uh green rectangle. You guys see so this right here trading above that 20 level, with another spike of the vix jumping over 61 trading, all the way as high as 37 38 levels, and that was two weeks ago when the s p and the nasdaq both dropped close to over Four and a half – almost five percent and right now next week, it’s going to be very very interesting if the vix dips below this 20 level and if we do have the fear essentially subside from the market, hence resulting in the s p. The nasdaq and the dow jones hitting record levels yet again so talking a little bit about the s p, 500 and the nasdaq. This right here is where we eventually closed as high as ‘ at 34. and, in my opinion, again it’s a very high likelihood for the s p to re test highs of 4 000 points and that right there is going to be a jump of another 70 Points or a push higher of close to one and a half, almost two percent – for the s p 500. This right here was the drop going back as far as the last week of january, when the vix jumped over 61, and then we saw the s, p drop another four and a half, almost five percent, so very, very important levels to watch for the volatility on The s p 500, as they do have an inverse relationship and something that we have discussed in my previous videos, because, as the vix kind of dies down, the s, p, 500 and nasdaq continue on their rally higher in terms of the nasdaq that’s going to be Ticker symbol ix ic right now, we are once again tagging that resistance as 14 000 points again that’s going to be inside this up.
Trending channel we’ve been trading inside that up training channel, making higher highs higher lows, and we are once again inside this sort of circle tagging that resistance now it’s, looking like we’re, going to potentially break through 14 100 14 200 points push up. Another 50 basis points 60 basis points uh, considering the futures are in the green right now, but again, it’s going to be very, very interesting week, first to find out how the markets react to those earnings, how the markets react to vaccinations fiscal stimulus, the volatility on The s p 500, so i hope you guys are excited too so keep a close eye at those levels again, a correction or a pullback is something that we always need to be prepared for, but it’s looking like this is going to be a little bit of A more prolonged rally for the market industry, so let me know in the comment section down below what do you guys think about these market indices? Are we going to see 15 000 for the nasdaq, or are we going to see 5 000 for the s p. 500 and 2021, so let me know in the comment section down below if those are two targets that we could potentially see for both of those market indices. So again, i hope you guys enjoyed this video and found this helpful. Please make sure to drop a like. It really helps out with the channel also make sure that you subscribe if you’re new and hit that notification bell.
So you don’t miss out on any future market updates and videos related to investing and technical breakdowns.