How Strong Must the April Bounce Be to Avoid a Major Selloff?
Monthly Support and Resistance Levels for April
As noted in the Weekly Compass on Saturday, technical indicators were extremely oversold. Furthermore, as shared in yesterday’s Daily Compass, the VIX closing in the red alongside the indices suggested a technical bounce was imminent, not to mention the very low percentage of stocks trading above their 20-day and 50-day moving averages.
Most importantly, we had confirmation of the bullish reversal when our daily levels were reclaimed. Yesterday, this publication anticipated bullish momentum for the SPX as long as the price stayed above $6,362. With resistance levels overhead including $6,518 (today’s high of $6,539), the market followed the roadmap. The levels posted last night for today’s session are listed below, providing a real-world example of how to utilize trailing stops on a trending day:
This publication posts daily levels for the following securities, if you trade with levels, this publication is for you:
SPX & ETFs: SPX, SPY, QQQ, SMH, TLT, GLD, SLV, DIA, VXX
Major Stocks: AAPL, MSFT, GOOG, AMZN, NVDA, META, TSLA, LLY, WMT, AVGO, COST, JPM, XOM, PLTR, NFLX, V, AMD
Crypto & Related: ETHA, IBIT
Leveraged ETFs: TQQQ, SQQQ, UDOW, SDOW, UPRO, SPXS, URTY, SRTY
Sectors: XLC, XLF, XLE, XLK, XLY, XLI, XLB, XLRE, XLP, XLV, XLU
Among the stocks highlighted yesterday, META stood out following its recovery of the Central Daily Level (CDL), while XOM displayed price action suggesting a healthy consolidation. Both moved as expected, with META outperforming its peers by gaining +6.7%, and XOM declining -1%.
Unlock the levels for tomorrow’s session, along with our essential MONTHLY LEVELS. These monthly benchmarks provide the critical reference for how much each security must reclaim this month to flip bearish momentum back to bullish.
Tomorrow we will study price action when there is a bearish monthly MACD crossover, a signal that has preceded bear markets or major corrections:
Let’s study the key levels for this month for now:
MONTHLY LEVELS