The Bear Took Over Tech
Last Wednesday, I published a bouncy VIX chart as a warning to subscribers. Employing this alert and setting a stop loss based on the central support/resistance level (blue on the chart below) could have significantly mitigated losses for many.
The two-hour chart highlights the resistance established on Monday and Tuesday. The Wednesday rally proved to be a bull trap, encountering resistance at the $5565 level, a level published last week.
Notice how price attempted a rebound at the second support level, $5284. These levels serve as a blueprint for the upcoming week, with bullish implications above the blue line and bearish below, allowing for potential decline measurements. The recent sell-off was exceptionally sharp, breaching two levels within just two days and nearing a third one.
For next week, the central level aligns with a resistance zone as indicated in the weekly overview. Given the daily chart and two-hour timeframe oscillator, a potential bounce on Monday or Tuesday is plausible, the watch out point is the updated central level indicated below.
Let me share with you a chart, I know there is a lot of fear and as I anticipated for Subscribers: “Sentiment and trading psychology will be tested in the weeks ahead”, and that is exactly what is happening.
QQQ:
Observe the precision of the 23.6% Fibonacci Retracement, which acted as support in conjunction with the monthly support/resistance level of $449, presented below.
Managing risk through the use of support and resistance levels for next week is a good idea for those considering entering the market. A comprehensive chart with additional technical indicators will be published in the Weekly Compass tomorrow.
This edition of S/R levels has updated the weekly and monthly levels for:
SPX, NDX, DJI, SPY, QQQ, IWM, ES=F, NQ=F, NVDA, META, MSFT, AMZN, GOOG, AAPL, TSLA, GDX, SILVER and OIL. Subscribe and plan ahead your trades.
Weekly S/R Levels: