Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA
The Daily Profit Compass provides stock market technical analysis for the stock market today and is focused on the indexes and FAAMGs. Key levels and trading locations are provided, along with trading plans and timely commentary to keep you on the right side of the trade.
Earnings
Companion Video
The video review from last night provides detailed coverage of the indexes and FAAMG names, plus a discussion on potential hedging strategies in case the market corrects. If you missed this last night, please watch it this morning. Futures have not moved enough to change the analysis. You’ll be ready to roll for the opening bell. Run the video at 1.25x to reduce run time.
Find the Video HERE
INDEX CHARTS
SPY 2 hour
$357 is the mid-point of the trading range bounded by $364 – $350. As long as price is below $357, maintain a bearish bias and look for tests of $354 and / or $350. From the daily chart, a simple 20ema test would bring price to $349.50. This aligns well with the technical support that resides there. Any move below $348 is a whole new ball game as it opens up gap that is over $4 wide. Remember, on any recapture of a broken support level from below is bullish.
SPY 30 min
QQQ 2 hour
The immediate key pivot for today is $290. If price moves below, initiate a bearish bias until / unless it gets recaptured. Below $290 opens up a relatively clear path to test $287, then potentially the top of the gap at $285. The 20ema off the daily comes in at 286.57 so at least initially I’d be expecting a reactionary bounce as price moves into the $287 – 286.57 zone. If traders panic out of the cyclical / value trade, you may see QQQ exhibit some relative strength compared to IWM / SPY. When trading QQQ its always a good idea to watch the FAAMG names along with SPY for potential direction and support levels.
QQQ 30 min
IWM 2 hr
A concerning look here for IWM as both RSI & PPO have rolled over, plus price has lost the uptrend line and has moved back into the prior trading range. Given that the 20ema off the daily does not come in until 167.53, price could fall significantly until reaching that common support ema. First up this morning, watch how price handles the gap at 175.40. If that gap fills, 173 then 170 become key levels on the way down.
IWM 30 min
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