Semiconductors Snap the Losing Streak - Levels to Recover
Daily Levels for July 22nd: SPX, TSLA, GOOG, MU, NVDA, INTC, NOW, and SPCX
The major U.S. stock indexes broke their three-day losing streaks today despite of the daily setup, pulling off a rebound driven by a strong recovery in semiconductor companies and solid earnings reports from blue-chip giants.
Chip and hardware makers roared back following a bruising sell-off in prior weeks. Micron (MU) surged 12%, Intel Corp (INTC) rallied 8.6%, and the semiconductors ETF SMH that we track, jumped 4.5%.
As mentioned yesterday, this is a market driven by extended hours moves, the premarket price action is driving most of the moves, and today’s pullback at the opening was marginal, the SPX found support at the central daily level (CDL: Bullish above/bearish below) of 7,465; this level was modeled yesterday for today’s session with 7,490 as the next daily target to watch, the price bounce from the CDL and flipped that first resistance to support in the morning.
I know, MMM and GM rallied 7% and 5% respectively, but the move in SMH (4.5%) was more than twice the NDX bounce (1.9%), and far above SPX (0.9%); for that reason this can be considered a semiconductors-driven rally (or market?), and we’re updating daily levels for MU and NVDA, the first one finding support at the daily level of 917 + the monthly level of 920 during the first hour of the session, then the price action surpassed 961, another level provided yesterday in the set of S/R levels. It’s interesting that NVDA moved a modest 1.9%.
Below, you will see the daily levels for the SPX as we daily update, and the same approach of daily levels combined with weekly and monthly ones to identify confluence zones where institutional algorithms are likely to react for the following securities: SPX, NVDA, MU, GOOG, TSLA, INTC, NOW, and SPCX
Unlock this daily update, and the main publications posted on Wednesdays, Fridays, and Saturdays with charts, levels, and price targets.
Why those stocks this week?
Semiconductors are showing signs or recovery, GOOG and TSLA post earnings tomorrow, same INTC and NOW on Thursday, all of them are likely to print major moves this week, and SPCX as I mentioned during the weekend, is getting close to a bounce, today the stock recovered its daily level and kept it as support during all the session, the updated levels for tomorrow for all of them are here:
Daily Levels and Higher-Timeframe Confluence Zones
These are the considerations for tomorrow, let’s begin with the SPX: