Bearish Setup Triggered - Daily Levels to Watch
SPX, QQQ, SMH, NVDA, MU, TSM, AMD: Daily Levels for July 8th
In yesterday’s daily note, I presented the bearish formation for the NDX based on six clearly defined criteria and provided the Central Daily Level (CDL) for QQQ that set the bearish tone for the day once it was lost.
What is a Central Daily Level? It’s a price level where price action is considered bullish above and bearish below. It includes specific support layers calculated one day in advance that consistently anticipate algorithmic reactions. For example, today’s Central Daily Level for the SPX was 7,529.9. The market opened with an immediate rejection at that level, followed by precise tests of the support levels I also shared yesterday to paid subscribers: 7,508.2 and 7,479. When you examine the 5 or 15 minute charts, the algorithmic reaction is unmistakable. These levels help to anticipate reversals before weekly and monthly levels (modeled every Friday) are reached.
This week, we’re tracking technology as a group, given the internal divergence between the Magnificent Seven, software, and semiconductors. Below are the essential daily levels for the SPX and QQQ, along with a “must-watch” chart for semiconductors.
As anticipated in the Weekly Compass, choppy price action can persist in semiconductors, marked by daily rallies followed by selloffs, much like we saw with AMD (+6.6% on Monday; -6.5% today). Regarding the SMH, the bearish target of 563 (-4.9%) anticipated last Saturday can be considered reached, with the latest low hitting 565 following Monday’s rejection at our central Weekly Level (CWL) of 611.
Other high-probability updates: IBIT and ETHA continued their bullish moves sealing 35.8 (+2.6%) and 13.4 (+3.9%) respectively; GLD hit our 383 weekly target before reversing; and the bullish move we’ve been expecting for XOM finally materialized with a +3.8% gain.
Can multi-week swings be managed with the Weekly Compass? Absolutely, last week PLTR was expected to bounce, the setup for this week was documented as bullish for this week as well with specific target at 136.6 for a +5.6% move, that level was reached comfortably today. The Weekly Compass can be accessed here:
Subscribe now to unlock tomorrow's daily levels for the SPX, QQQ, SMH and Semiconductor megacaps like NVDA, AVGO, TSM, AMD, MU, QCOM, and AMAT; along with an essential chart for SMH. Tomorrow is Market Intelligence edition, featuring graphic updates on all high-probability setups from last Saturday’s report.