End of the Pullback, or the Calm Before More?
$7,309 was the central daily level for the $S&P 500(.SPX)$ 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 $Invesco QQQ(QQQ)$ , 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, $Advanced Micro Devices(AMD)$ +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 $VanEck Semiconductor ETF(SMH)$ +6.8%, 962.7 for $Micron Technology(MU)$ +11.7%, 543.4 for $Applied Materials(AMAT)$ +11.2%, 565.9 for $Meta Platforms, Inc.(META)$ -0.4%, and 352.7 for $Alphabet(GOOG)$ +0.9%. Subscribers have the full set of weekly and monthly levels to assess potential destinations in both directions.
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