We have been monitoring price action closely this week. On Monday, I posted four criteria essential for navigating bounces; one of those criteria is the recovery of central weekly and monthly levels that delineate bullish versus bearish conditions. Those levels are modeled every Friday based on pure price action and volume footprints where institutional algorithms react, making them relevant because they reflect recent momentum rather than long-term diagonals (that are good to have in mind, and sometimes they match with modeled levels, but the accuracy is lower).
On Friday, I shared two long-term charts for the SPX and QQQ demonstrating how critical it is when a central weekly and monthly level is recovered:
Today, tech (NDX and QQQ) reclaimed its central weekly level, the bullish reaction to SpaceX earnings fueled the market as considered yesterday. As a $2 trillion company, SpaceX is larger than Broadcom ($1.8T), Meta ($1.5T), and even Tesla ($1.5T). It has the weight to influence the broader tech sector and specifically AI stocks, as seen today when semiconductor leaders like NVDA, AMD, and MU held above their anticipated daily levels (215.9, 535.8, and 898.8, respectively) and printed a constructive picture.
Since semiconductors are oversold, I provided daily levels yesterday combined with the weekly ones to monitor early bullish moves. Some might assume daily levels are exclusively for day traders, but that is not the case. Daily levels serve as early milestones during a recovery, giving bulls a valid technical confirmation that a bounce is underway, and conversely, signaling bearishness when those levels are lost.
The levels modeled every week apply for these tickers:
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Today’s Agenda
Charts to Watch: META, TSLA, GOOG, NFLX
Daily plan for SPX, ES=F and Bounce Assessment
Daily and Weekly Levels Combined for SPX, ES=F, SPCX, TSLA, META, NVDA, MU, AMD.
Watchlist Tracker
Let’s begin.