During the previous earnings season, we studied the high probability of a reversal when price action is overextended before the open. We saw this play out today with AAPL and PLTR. Both were cratering in the premarket, down almost 5% and 8% respectively. Shorting into these conditions is extremely risky. Both tickers printed a green reversal candle and recovered most of the bearish gap today, mirroring AMZN from last week, which is now delivering on the bullish expectations outlined in the Weekly Compass, this week the stock has gained +4.3%, while AVGO, another name flagged for a bullish reversal, is already up +2.0%.
Despite of the decline on AAPL, both the NDX and the SPX managed to finish in the green. Both indices printed indecisive inside days (harami candles) that signal a potential directional shift. Still, choppy price action persists, and the major indices need to show more conviction to confirm a durable bottom.
Semiconductors led today’s session, with the semiconductor ETF (SMH) climbing more than 2% while consumer staples, materials, energy, and financials lagged. After the bell, AMD beat earnings expectations, setting up potential upside continuation across the semiconductor complex tomorrow. Even so, the broader indices still have work to do. Today, I break down the exact levels to navigate potential reversal setups in PLTR and AAPL, alongside quantitative parameters to manage post-earnings euphoria in AMD.
With midterm election results rolling in tonight, the SPX, ES=F, and QQQ could confirm today’s potential reversal signals, strictly contingent on reclaiming tomorrow’s Central Daily Level (CDL) detailed below.
Upgrade to a paid subscription to access tomorrow’s daily levels, along with my comprehensive weekend publications featuring technical analyses, modeled price levels, and setups for this week. get access here:
A subscription also unlocks the full Fundamental Research Library, updated today with institutional one-pagers for AAPL and PLTR, including 1-, 3-, and 12-month price targets and catalysts to monitor. Get access here:
Finally, you can access my complete Market Intelligence and Educational Library right here, which includes two downloadable ebooks.
Whether you utilize the technical roadmaps, the fundamental library, or the educational content, any single resource alone easily justifies the paid subscription. Subscribe now to unlock full access. SmartReversals.com is your complete hub for market intelligence and investment strategy.
Today’s Agenda
Watchlist Tracker: Focus on AAPL, PLTR, AMD, and Tickers for the Week (AMZN, SPCX, QQQ, LLY, GOOG, and Metals)
Daily and Weekly Levels Combined for SPX, ES=F, AAPL, PLTR, AMD, and other megacaps
Daily plan for SPX, ES=F.