Easy on the Way Up, Choppy on the Way Down

Rallies move more in a clear trend. Pullbacks stop, start, and test your patience at every level.

The S&P 500 closed at 7,386.65 (-0.26%) after a session with high volatility; for second day the confluence zone of the Central Monthly and Central Weekly level acted as resistance (details below), and our bearish weekly target of 7,294 posted in the Weekly Compass ahead of this week was reached and exceeded today (-1.2% versus Friday’s close). The anticipated gap fill to $7,212 had a first serious attempt.

Regarding our high probability setups, AAPL cumulates a -5.4% decline this week, exceeding the bearish expectations and target anticipated 🎯. Similar case for MSFT that has declined -3.2% during the week, moving in the expected direction 🎯.

Let’s assess the market conditions with the biggest movers from our watchlist, the daily levels for the SPX tomorrow, and a key chart to consider after a volatile opening of the week. Unlock the update by subscribing to the paid plan.

This is why choppy price action may continue

Rallies occur with more conviction, while declines trap bulls with spikes during extended hours that vanish in market hours, or with bounces from key levels as it happened today.

This chart suggests caution for both bulls and bears, and for that reason the SPX detailed here are essential to monitor momentum and planning ahead: