Hey Traders,
This morning started off with a jolt.
Markets opened down hard — I’m talkin’ over 1% across each of the three major indexes — thanks to renewed tariff news making the rounds.
Now normally, headlines like that get people all twisted up.
You see red on the screen and folks start panicking. But I want you to look closer.
Because if you’ve been trading with me, you already know the real story isn’t in the news — it’s in the trendlines.
And today? They told us everything we needed to know.
Watch What Just Happened
Take a look at the SPY.
We’ve been talking all week about how it finally broke above the 20-, 50-, and 200-day moving averages. And today, even with a nasty open, it came right back down and bounced off the 20-day.
That line used to be overhead resistance. Now? It’s acting like a floor… like support.
The DIA’s a little different — it had already dropped below its 200 day, but guess what?
It bounced right off the next level of support which where the 20- and 50-day are touching and crossing over each other right now.
That’s a dual support level if I’ve ever seen one.
And QQQ? It’s been the most bullish of the three.
It didn’t even make it to the 20-day. While it did open down today, it held strong and turned higher without even touching the 20-day trendline.
So you tell me — is this market falling apart? Or are we seeing what structure looks like in action?
This Is Why I Trust the Lines
These trendlines aren’t just fancy decorations.
They’re the bones of the market.
And when price breaks through them and holds, the game flips.
What used to be resistance becomes support.
That’s not be bragging — that’s just how markets work.
But you’ve got to train your eyes to see it. Because if you’re still reacting to headlines and chasing candles, you’re gonna miss the real setup.
So What Now?
Here’s what I’m watching:
As long as we keep bouncing off these levels — especially on red headline days like this — that tells me the market’s trying to move higher.
That doesn’t mean it’s gonna be a straight line up.
But if you’re trading smart, you don’t need it to be.
You just need to know your levels, trust your plan, and stick with high-odds setups — the ones that give you cushion and let the trendlines do the heavy lifting.
Markets move. Headlines shout…
But the trendlines whisper the truth… Listen close.
Trade well,
Jack Carter
P.S. NVDA’s about to release earnings next week. But me? I’m not chasing. Here’s how I’m playing it.
