S / R Levels Aug 26th - 30th

Some charts suggest a local top in tech mega-caps. Small Caps on the other hand are bullish, and SPX did not close above yesterdays bearish engulfing candle. Who's telling the truth? Plan ahead!

Thursday printed a bearish engulfing candle, usually a scary candle for bulls, however price was far above the central S/R level, if you used the coordinates provided last Friday, you were confident that the main bearish validation was far from the decline.

$222.8 for AAPL, $37.7 for GDX, $116.8 for NVDA, and $5480 for SPX were levels that were not breached, and even $210.2 for TSLA acted as a bouncer.

Equities also included: NDX, QQQ, IWM, DJI, SILVER, OIL, ES=F, NQ=F, all the Mag 7, Bitcoin and Ethereum.

Check the lows of the week that just ended and see how important is to use these references to avoid panicking or to consider seriously to take some action.

Last Wednesday in the educational content I provided my view about the next destination for SPX; the methodology is the same I used when I anticipated in March 2023 (back then in social media) the $4607 reversal level, from which the correction started; and the $5451 level that was temporarily crossed in July but it was a good reference for a pullback.

Tomorrow I’ll elaborate on it in the Weekly Compass.

S/R levels for next week, the central or blue number is the best reference to validate reversals: