The market continues showing weakness, with the SPX declining while the volatility index jumped 3%. The Magnificent Seven remain under pressure. MSFT, one of the high-probability setups posted in the latest Weekly Compass, reached its bearish target in a clean move since the stock revisited Friday’s closing price at the open before initiating a -3% selloff to 367.9, our bearish target 🎯; the stock stayed below the invalidation level for the bearish setup studied.
AAPL, NVDA, META, GOOG, and AMZN were all under pressure. Only TSLA managed to close in the green; however, it continues to respect the broader bearish trend (chart below).
On SPCX: the stock is following the script of previous IPOs covered in the special edition published before the listing. It rallied more than 50% from $150 to $225, a level posted here ahead of time with the warning of a gap fill, the recent selloff is consistent with stocks that have seen similar or even smaller post-IPO surges.
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See below the daily levels for the SPX, including the references needed to recover bullish momentum, the TSLA chart with the key trend-line to watch (which is the same for the other magnificent seven, and the daily levels for SPCX.
SPX - Levels and Targets for Tomorrow
Before analyzing the common pattern for all the magnificent seven, this is the context for the index: