The SPX rallied on Monday in a very rapid way to a high weekly target, that day I posted two charts highlighting the reason why a consolidation/reversal could follow. Yesterday indeed formed a doji candle on the daily timeframe. I anticipated the Central Daily Level (CDL) of 7,767 to paid subscribers, noting it as the key level to watch today (bearish below, bullish above). Price action lost this level at the open and broke through the support levels one by one (7,753, 7,741, and 7,727) before finding support at the weekly zone of 7,702.
Yesterday, we reviewed bearish factors, including the shooting star on AAPL (which correctly anticipated today’s retrace), low market breadth, and a VIX ready to bounce. Combined, these factors contributed to the index’s decline.
Today, we will review the setups posted on Saturday. NVDA reached its immediate target of 227🎯 (+2.1%), AMD rallied to 612🎯 (+9.5%), and TSLA hit 384🎯 (+5.5%). While some of these have since retraced, they provided reversal signals that we will analyze today as a recap of combining. Today’s edition is an educational piece designed to guide you through navigating current market conditions. We will also cover NFLX, DIA (bearish setup in progress), MSFT, and GOOG.
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Today’s Agenda
Setups Navigation: Combining levels and technical indicators
Daily plan for SPX, ES=F.
Daily and Weekly Levels Combined for SPX, ES=F, and Mag 7
Watchlist Tracker
Setups Navigation: Combining Levels and Technical Indicators
This chapter is essential to navigate the setups I highlight every Saturday as the ones that are more likely to reach their targets, also for the ones I don’t highlight but are studied in case you’re trading another stock, and the stocks you suggest as paid subscriber every weekend. We will study the cases/charts for SPX, NVDA, NFLX, DIA, GOOG and TSLA.
Let’s begin with the SPX, see how complimentary are these two charts: