Market in Consolidation - Playing the Reversal Candle
Support and Resistance Levels for the Week Ahead - Indices, Futures, Megacaps, ETFs, and Crypto.
Two weeks ago, this publication anticipated a strong bounce in the U.S. indices. The market delivered: the SPX rose +3.7%, the NDX gained +4.9%, and my top pick for the week, IWM, rallied +5.6%. For the week that just ended, a consolidation was expected, and the indices closed essentially flat.
Last week, I shared with premium subscribers high-probability trades that defied the consolidation, these four were posted, and the results were impressive:
META jumped +3.9%
TSLA surged +5.8%
SMH rallied +3.5%
SLV gained +3.4%.
These are clear, and easy to understand setups that include specific safety levels to define stops in case of invalidation.
Just one of these trades pays for the subscription. This new feature in the Weekly Compass is a no brainer for both advanced and new traders. My approach relies on technical indicators, using Support and Resistance to set precise price targets and exit levels when a setup is invalidated. Unlock the premium content now!
With the addition of the Momentum Map, customized Support & Resistance levels, and now High Probability Trades, we have significantly enhanced the service this year. Lock in your subscription at the current price today!
The Weekly Compass where those trades were posted is here:
The current market structure is no new or different from previous long term patterns, see where we are right now and what to expect for 2026 here:
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Today we analyze the Support and Resistance levels for next week, these levels are essential for assessing technical setups and the momentum map. For example: when a stock is in the oversold quadrant AND the technical setup suggests a bounce (like few weeks ago for TSLA or LLY), the central weekly level acts as a simple validator: “bullish above” and “bearish below”. The subsequent levels then serve as actionable targets for both pullbacks and bounces.
The central weekly levels for the week that just ended were $676 for SPY, $176 for NVDA, $611 for QQQ, and $631 for META; in all those cases acting as momentum. validators as the price remained above these lines. In the same way, $384 for AVGO and $483 for MSFT, helped signal the invalidation of bullish setups and served as crucial reference points for setting stop losses and protecting capital.
This publication consistently analyzes the following securities to provide a broad market perspective and empower your trading decisions:
Indices & Futures: SPX, NDX, DJI, IWM, ES=F, NQ=F
ETFs: SPY, QQQ, SMH, TLT, GLD, SLV, DIA, SH, PSQ
Major Stocks: AAPL, MSFT, GOOG, AMZN, NVDA, META, TSLA, BRK.B, LLY, WMT, AVGO, COST, JPM, PLTR, NFLX
Crypto & Related: Bitcoin, ETH, IBIT, MSTR
Leveraged ETFs: TQQQ, SQQQ, UDOW, SDOW, UPRO, SPXS, URTY, SRTY
When you are premium subscriber, you can suggest additional securities so their weekly levels are modeled and posted on Sundays in the paid subscriber’s chat.
Shooting Star Candle in the SP500
This candlestick is the opposite version of the hammer and dragonfly formation as the arrows below highlight; when those candlesticks show an intra day reversal, they are a significant signal to watch, sometimes they are immediate tops or bottoms, and sometimes they are early signals.
Let’s see the central and monthly levels updated, they can help validating next week the potential reversal candles that were printed today across the board, being the SPX the most important to watch. The section below also includes the stock market and crypto space commentary: