Can MU Rescue the Broader Market?
Mind Tomorrow's Gap - Key Technicals and Price Levels to Watch for SPX, QQQ, all Magnificent Seven, and high-volume assets.
Over the weekend, the Weekly Compass anticipated a bearish reversal for the market. This anticipation came despite the rally the market printed on Friday because, as mentioned then, many elements remained bearish beneath the surface.
The Setups Blueprint highlighted strong probabilities for a bearish reversal in the SPX, targeting 7,409 for a 1.2% drop. The actual low for the week reached 7,336.8, representing a 2% decline from Friday’s close 🎯.
Another high-probability setup was a bearish reversal for SMH. I indicated that 646.6 would be breached, triggering a confirmed target of 629.3 for a 4.6% decline. The actual low hit 607 🎯 for an 8% drop, closely approaching our bearish extension target.
The next anticipated setup was a bearish reversal for AMD, targeting 510 for a 5% decline. That level has acted as the exact support zone for AMD over the last two days 🎯.
For Gold (GLD), the Weekly Compass suggested a bearish continuation toward 375.1 for a 3.1% drop. The current move reached our third bearish target at 364.7, logging a 5.8% decline 🎯.
Another bearish move highlighted was for MSFT, pointing toward 367.9 for a 3% selloff. The actual low for the week hit 364.7 🎯, extending beyond our initial target.
In summary, MSFT, GLD, AMD, SMH, and the SPX represented five high-probability setups that reached their targets cleanly with an average gain over 3%.
The strength in finance has kept JPM and DIA afloat, that setup is invalidated as of now, XOM on the other hand remains weak despite oversold conditions. The average risk reference for those averaged 0.6%. Every setup posted here comes with an invalidation level so investors have complete information to make informed decisions and protect their capital.
The Weekly Compass highlighted bearish conditions and the setups I handpicked, but subscribers who follow PLTR, META, SLV, NFLX, or IBIT, they had the bearish roadmap in the executive blueprint posted on Saturday. A bearish move was likely.
This brings us to the midweek update. Let’s move to the technical charts below with price target updates, upgrade your subscription for this institutional approach with transparent technical indicators and clear price targets.
For the SPX, we have been tracking the daily levels to anticipate upcoming moves. As anticipated for paid subscribers last night, today’s rally vanished after finding rejection near 7,409.5, a resistance clearly identified yesterday as a confluence zone where any upside would be tested 🎯.
Today, we will assess broader market conditions and the index’s current stance, especially considering the crucial support zone where it closed. We will also examine key charts for IWM, QQQ, AAPL, AMZN, NVDA, AMD, and GLD, also providing context for the other assets on our watchlist; we will map out the key resistance zones for our entire watchlist if the bounce following the MU earnings report persists. Just as I highlighted overhead resistance last night, for the SPX but today is for all our ETFs, all Magnificent Seven, Crypto and the other megacaps.
Let’s begin.
SPX - The Line in the Sand
The purple trendline was tested again today for the fifth time in June. As technical principles dictate, the more a level is tested, the higher the probability of it being breached. Here is how to analyze tomorrow's potential bounce and exactly what is needed to validate true bullish momentum rather than just another faded rally: