The SPX closed modestly lower today and remains below the key resistance zone described yesterday. The index absorbed the bearish pressure from NVDA after Jensen Huang’s resignation as CEO, and it barely moved.
Yesterday I provided the levels for NVDA, highlighting the importance of 162.7 and the possibility of one last overextension. That is what printed. Price rallied from 148.8 to 166.2, an +11.7% move on its own from open to close. We have studied what major breaches of the lower Bollinger band imply, and this move was simply a return to the range.
Resilient price action: A decline of 0.35% in the SPX and 0.3% in the NDX is minimal considering the overnight panic. The high-probability bullish setups for the week kept working:
AMD: Surpassed its bullish target at 567.7 and is up 30% for the week.
GOOG: Flipped 293 from resistance to support and is up 4% for the week.
SMH: Reached its weekly target at 516, an 11% move for the week, followed by a shallow consolidation today.
SPCX: Once again 144 was reached today, a 7.7% move revisiting the anticipated bullish target.
AVGO: One of my monthly picks for long-term investors and traders. It is up 24% this week and reached 369, the upper weekly level modeled last Friday.
What to watch tomorrow: The Producer Price Index (PPI) will be released before the bell, and the SPX found rejection at the major confluence of resistances studied yesterday. That makes tomorrow’s levels, and the most important chart to watch, the focus of this note.
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Today’s Agenda
The Most Important Chart of the Week
Watchlist Tracker
Daily plan for SPX, ES=F.
Daily and Weekly Levels Combined for SPX, ES=F, META, GOOG, AMZN, AAPL
Let’s go.