Consolidation in Play

Daily Levels for April 21st

Hello everyone,

Last night, when I shared the daily levels, we identified 709.4 as the Central Daily Level (CDL) for the SPY. The logic was straightforward: if that level was lost, the targets to watch were 706.5 and 702.8. Today’s session validated the model, 709.4 acted as the resistance zone for the day, while 706.5 served as the effective support where the price found its floor.

Just as weekly levels provide a roadmap for that period, daily levels frame price action for the “here and now.” Consider these examples of precision from today:

• IWM: Remained resilient, trading between its CDL of 275.5 and the upside target of 277.9. Both levels were anticipated in last night’s update.

• TSLA: In the Weekly Compass, I mentioned resistance at the 200DMA and 40WMA, suggesting consolidation after the recent rally. Today, the CDL of 400.5 was lost right at the open, and price fell to 391.8, a daily support level projected last night.

Why These Levels Matter

Having these levels at your fingertips allows you to anticipate potential destinations and, more importantly, identify potential reversals.

For example, look at the 15-minute chart for NVDA: at 11:15 AM, a reversal candle printed at 198.5 (our second support level for the day posted yesterday). From that precise point, the price rallied, recovering from a -1.6% drop to close back above its CDL of 200.

The Roadmap for Tomorrow

The daily levels for tomorrow’s session are ready, starting with the SPX:

• Scenario A (Bullish/Flat): If the index stays above 7,105.4, expect a flat consolidation or continued bullish bias.

• Scenario B (Downside): If that support fails, the lower layers of defense are posted below.

Using daily levels provides early validation signals and to understand price action between Weekly and Monthly Levels that are wider.

Daily Levels for April 21st