The Week's Most Important Chart and Level
End of the Pullback, or the Calm Before More?
$7,309 was the central daily level for the SPX today. The index struggled through the morning and that level acted as resistance, as expected, given that volatility is high and yesterday’s decline in the index was full of conviction. At 1:30 PM, however, the index rallied +0.7% and the central level was recovered based on positive geopolitical news.
Also as anticipated, the next resistance, the bullish target zone, was 7,353, and price reached it in a matter of two minutes. After about an hour of consolidation, the rally continued toward 7,440, and the day ended before that milestone was reached.
Daily levels become key when the weekly ones are too wide, a product of high volatility and large price moves. That was the case for QQQ, which was more bullish then SPX since the daily level of 699 was a solid support and the price visited 705.6 a couple of times during the morning. Here, the news that fueled the rally at 1:30 PM NY time sent QQQ to 717.6, a daily level also modeled yesterday for QQQ as for all of the Magnificent Seven and other American and international megacaps.
Having levels ahead of time also saves you an invaluable asset: Time, so you can plan ahead without rushing when the market opens.
For example, many stocks closed with bullish conviction, and they need to hold these daily levels tomorrow to keep momentum. For example, AMD +8.0% closed with bullish conviction, and 479.0 is the level that will define bullish or bearish daily momentum tomorrow. The same applies to 600.9 for SMH +6.8%, 962.7 for MU +11.7%, 543.4 for AMAT +11.2%, 565.9 for META -0.4%, and 352.7 for GOOG +0.9%. Subscribers have the full set of weekly and monthly levels to assess potential destinations in both directions.
That said, the key daily levels for the SPX are below, along with the most important chart of the week at this point. Subscribe and get access to this data ahead of the biggest IPO in stock market history. Tomorrow SpaceX goes public, and retail traders will be able to buy the ticker SPCX. Do not miss the special study on IPOs we posted yesterday. Whether you are a trader or a long-term investor, make informed decisions with full awareness of the potential moves that follow an IPO. Access here:
The Most Important Chart of the Week
Last week this chart worked as an essential anticipation for the selloff, it was for tech sector, today it’s the SPX: