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Good morning ISP Members, Here's what we found during this morning's scan:

Alert Update

VFC (V.F. Corporation) - Has still not cleared $14 so that one is on the sidelines.

CCO (Clear Channel Outdoor Holdings, Inc.) - Which was highlighted last week during the VIP update IN FACT took off! Keep an eye on that since there was a pull back as of yesterday morning and there may be a chance to still get in.

RFL (Rafael Holdings, Inc.) BOLTED last week - a classic insider play! May also still have room in the tank. This $16.7M buy is your classic ‘conviction’ play. Note that share price was already running… (screen shots below) We'll review these along with the tickers we're watching during today's VIP member event

Also note they should keep an eye out for a deep dive scan session this Friday... so come with questions and/or keep an eye out for the recording! Plenty more to chase... keep an eye on buys during this down market action!

Happy Trading! Jason & Team WealthMintr

Despite the choppiness, May turned out to be a very bullish month as the major indexes posted solid gains. With earnings season winding down, and volatility still slightly elevated, savvy traders are looking for clues to confirm a possible summer rally - or signs of a market top.

The second quarter earnings season starts in early July and until then, economic and geopolitical news, will likely drive price action. We have warned a close above 24-26 on the Volatility Index (VIX) would be bearish for the market while closes below 17.50 would be bullish for the major indexes.

Aside from the VIX, we are also watching major support and resistance levels for the major indexes like a hawk. Additionally, we also like to track the Dow Jones Transportation Average (DJT) as the index can sometimes offer important clues on how the Dow Jones might trade.

The Dow Transports often act as a leading or confirming indicator for the Dow and the broader market, in general. If you're seeing divergences between the Dow and Dow Transports, it’s worth doing further research as it might signal a turning point or loss of momentum.

This theory, or relationship, between the blue-chips and the transports is rooted in a century-old principle known as Dow Theory, which remains influential among technical analysts. Historically, the Dow Theory suggests the stock market is in an uptrend if both the Dow Jones Industrials Average and the Transports are making higher highs. These factors would also confirm a possible bull market or economic strength.

A deeper dive into Dow theory also suggests that if the Dow is rising but the Transports are lagging or falling, this could signal bearish divergence and cracks in the economy. If the Transports break sharply lower it could be a warning signal that the Dow may follow its lead shortly afterwards. And finally, if the Transports are leading the Dow higher, this is a bullish signal and means demand and growth could be picking up.

With this being said, Dow Theory is not a timing tool, and is better used for possible trend confirmation. In other words, this analysis is more reliable over weeks and months, not day-to-day. The Transport stocks are and heavily tied to economic trends like fuel prices, e-commerce volume, and supply chains.

As far as the charts for both, let’s take a look at the Dow Jones Transportation Index (DJT), first. The May 12th breakout above the 50-day moving average was a bullish development but fell shy of key resistance at 15,250. A six-session trading range followed before a pullback towards the 50-day moving average. The recent action is still holding an uptrend line with resistance at 15,250 forming an ascending triangle. This is typically a bullish setup for a breakout, or higher highs, if cleared and held.

A drop below 14,500-14,250 and out of this technical formation would be a bearish development. Closes below the latter would likely confirm a near-term top for the Transports and possibly the overall market.

There are 20 companies in DJT that include the major airlines (Delta, American), railroads (Union Pacific, CSX), trucking (J.B. Hunt, Old Dominion), and shipping and logistics (FedEx, UPS). It can also helpful to check the price action in some of these individual stocks to confirm price action.

As far as the Dow, key resistance levels are at 42,400 and the 200-day moving average followed by 42,800. Support is at 41,000 and the 50-day moving average.

In summary, watch for multiple closes above 15,250 on the Dow Jones Transportation Index, then 42,400 and 42,800 for the Dow. If all of these levels are cleared and held, a summer rally could be in store for the stock market.

Closes below 14,250 on the Dow Jones Transportation Index and closes below 41,000 and the 50-day moving average on the Dow could be bearish developments for the stock market.

As far as trading the Transports, the S&P Transportation Index (XTN) is also showing an ascending triangle pattern with a possible breakout occurring on continued closes above $80. The next waves of resistance would be at $82 and 200-day moving average followed by $84. A close below support at $74 and the 50-day moving average would suggest a near-term top.

Market Posts Bullish Numbers for May

Wall Street was mostly weak on Friday after the Trump administration indicated trade negotiations with China is at a stalemate and may require the Presidents from both parties to come together for the next possible steps. Volatility spiked above a key level of resistance shortly after the open following the news before the major indexes made a late day comeback off the lows.

The Nasdaq fell to a low of 18,847 before ending at 19,113 (-0.3%). Key support at 19,000 was cracked but held. Resistance remains at 19,250.

The S&P 500 closed just a half-point lower at 5,911 (-0.01%) after bottoming at 5,843. Key support at 5,850 held. Resistance is at 5,950.

The Dow traded up to 42,376 while settling at 42,270 (+0.1%). Resistance at 42,250 was recovered. Support is at 42,000.

Earnings and Economic News

Before the open: Campbell Soup (CPB), Science Applications International (SAIC)

After the close: Credo Technology Group (CRDO), Pyramid Oil (PDO)

Economic News

PMI Manufacturing Index - 9:45am

Construction Spending - 10:00am

ISM Manufacturing Index - 10:00am

Technical Outlook and Market Thoughts

For the week, the Nasdaq was up 2% while the S&P rose 1.9%. The Dow added 1.6% and the Russell gained 1.4%. For the month of May, the Nasdaq surged over 10%; the S&P jumped 6%; the Russell rallied 5%; and the Dow soared 4%.

Once again, the uptrend channels held for the Dow and the Nasdaq with the S&P’s getting stretched. The Russell fell out of its uptrend channel on May 21st but an adjusted uptrend channel off the May 23rd low keeps a fresh one in play.

This is another example of “stretch” and why we like to do daily technical analysis. In fact, throughout Friday’s action we were doing chart work and watching key support levels.

The Nasdaq remains in a 14-session trading range between 18,500-19,250 following the May 12th breakout. Thursday’s higher multi-month peak at 19,389 was a tease. Continued closes above 19,250, and a level the bulls need to recover to start the week, confirms a possible push towards 19,750-20,000.

A drop below 18,500 and the 200-day moving average would be bearish signals for lower lows down to 18,250-18,000. This level also represents the bottom of the current uptrend channel.

The S&P 500 remains rangebound between 5,800-5,975 with the May 23rd low at 5,767. Multiple closes below 5,800 and the 200-day moving average would suggest further weakness to 5,700-5,650.

Key resistance is at 5,950 with the May 19th top at 5,968. There is upside potential to 6,000-6,100 on closes above the aforementioned price points.

The Russell 2000 held its adjusted uptrend channel while hovering around 2,075. The March 24th and 25th hit a double top high at 2,110 with more crucial resistance at 2,135. If these levels are cleared and held, there is gap up potential towards 2,175-2,200 and the 200-day moving average.

Key support is at 2,050 with Friday’s low at 2,051. Multiple closes back below this level would imply a further slide down to 2,000 and the 50-day moving average.

The Dow has closed above 42,000 for four-straight sessions with backup support at 41,750-41,500. A close below 41,000 and the 50-day moving average would be a bearish development.

The bears have been holding 42,500 and the 200-day moving average for seven-straight sessions. Closes above 42,800, specifically, would be a bullish development for the blue-chips with further strength to 43,000-43,250.

The Volatility Index (VIX) bubbled to a high of 20.55 with key resistance at 20 getting topped but holding. Closes above resistance at 24-26 and the 50-day moving average would be a renewed bearish development for the stock market.

Closes below 17.50 are needed to give the bulls some momentum. There was one close below 17.50 on May 16th that teased the market.

With the first-quarter earnings season in the books, economic news and tariff concerns will likely dominate the headlines over the near-term. However, there will be a few notable companies reporting throughout June that could provide traders some clues on the economy and the consumer. Lululemon Athletica (LULU), DocuSign (DOCU) and Toro (TTC) highlight a busy Thursday.

The second-quarter closes on month end and companies will start to announce their numbers the second week of July. We expect a busy summer of trading so stay locked-and-loaded as a run to all-times highs could be coming, or another double-digit correction if key support levels start to crack.

With shares of Tesla (TSLA) breaking out to higher highs, investors might want to add Direxion Daily TSLA Bull 2X Shares (TSLL) to their Watch List. This is a leveraged exchanged-traded fund (ETF) designed to move 200% of the daily performance of Tesla stock. In other words, if TSLA is up or down 1%, TSLL will move 2%, or again, twice the action that TSLA does.

The ETF was created in August 2022 and has assets under management of just over $6 billion. The current dividend yield is just under 4% and is paid quarterly. This also makes TSLL a great covered call candidate as you can sell call options to get additional income on a monthly basis.

The chart below shows shares made a move from $11.20 on November 4th to $25.15 by December 5th of last year. If the 200-day moving average continues to hold, and shares can clear and hold $17 for multiple sessions, there is a chance for a quick trip to $19-$20.

There has also been some unusual options activity recently in TSLL. On May 21st, the stock closed at $14.08 with the TSLL July 25 calls at 70 cents. Volume for the session hit 5,185 contracts versus open interest of 31 contract beforehand.

Other popular and leveraged ETF’s include: Direxion Daily Semiconductor Bull 3X Shares (SOXL), ProShares UltraPro QQQ (TQQQ), and Direxion Daily S&P 500 Bull 3X Shares (SPXL).

It is important to note, the same risks that stocks have also apply to ETF’s but leveraged ETF’s can carry two and three times the risks/ rewards. Leveraged ETF’s have become popular and provide multiple exposure (again 2X or 3X) to the daily performance of the underlying stock or index.

Leveraged ETF’s are a speculative way for traders looking to capitalize on short-term market moves without engaging in derivatives or futures. They also offer a way for traders to capture the whiplash of sentiment-driven markets.

A key consideration when trading leveraged ETF’s is that they are intended for short-term trading, for the most part. They are highly volatile and suitable for traders that actively manage their portfolios and understand the risks associated with leveraged ETF’s.

Nvidia (NVDA) Tops Estimates

The stock market rebounded on Tuesday following a three-day holiday weekend to keep the current uptrend channels intact. Wednesday’s slight pullback came ahead of Nvidia’s earnings as traders were hesitant to put fresh money to work.

The Nasdaq closed at 19,100 (-0.5%) after testing a low of 19,084. Key support at 19,000 held. Resistance is at 19,250.

The S&P 500 reached a peak of 5,939 before settling lower at 5,888 (-0.6%). Support at 5,800 held. Resistance is at 5,950.

The Dow finished at 42,098 (-0.6%) with the intraday low at 42,042. Support at 42,000 held. Resistance is at 42,250.

Earnings and Economic News

Before the open: Best Buy (BBY), Burlington Stores (BURL), Foot Locker (FL), Kohl’s (KSS)

After the close: American Eagle Outfitters (AEO), Dell Technologies (DELL), Marvell Technology Group (MRVL), Zscaler (ZS)

Economic news:

Initial Jobless Claims - 8:30am

GDP - 8:30am

Pending Home Sales - 10:00am

Technical Outlook and Market Thoughts

It was crucial the current uptrend channels held to start the week with volatility easing, or at least holding key resistance. While there was a little wiggle room for some stretch, Tuesday’s 2% market rebound remained an ongoing bullish signal as key resistance levels were cleared, or challenged.

Wednesday’s slight pullback kept the blue-chips below the 200-day moving average. The S&P and the Nasdaq cleared their 200-day moving averages on the May 12th breakout. The small-caps remain trapped between the 50-day and 200-day moving averages but could catch fire if the mid-month high is cleared.

The Nasdaq remains in a 12-session trading range between 18,500-19,250 following the May 12th breakout. Wednesday’s multi-month peak reached 19,276 with closes above 19,250 confirming a possible push towards 19,750-20,000.

A close below 18,500 and the 200-day moving average would be a slightly bearish development with additional weakness to 18,250-18,000.

The S&P 500 is also in a 12-session trading range between 5,800-5,975 with Wednesday’s top at 5,939. Multiple closes above 5,975 and the monthly peak at 5,968 would indicate ongoing strength to 6,000-6,100.

Key support is now at 5,850. There is stretch down to 5,800 and the 200-day moving average on a close below this level.

The Russell 2000 traded up to 2,114 on May 16th with Wednesday’s peak at 2,092. The March 24th and 25th hit a double top high at 2,110 with more crucial resistance at 2,135. This level failed to hold as crucial support on the March 1st 3% selloff in the index. If all of the aforementioned levels are cleared and held, there is potential for a resumed and quick v-shape recovery up to 2,175-2,200 and the 200-day moving average.

Key support is at 2,050. A drop back below this level would suggest a retest to 2,000 and the 50-day moving average.

The Dow cleared its 200-day moving average on Wednesday but a level that has held both days this week. Multiple closes above 42,250 gets 42,750-43,000 back in play with the prior Monday’s peak at 42,842.

Key support is at 42,000 with backup help at 41,750-41,500. A close below 41,000 and the 50-day moving average would imply a near-term top for the blue-chips.

The Volatility Index (VIX) fell 15% on Tuesday and closed back below key support at 20. The more important target remains at 17.50 with multiple closes below this level confirming a run to all-time highs for the major indexes. There was one close below 17.50 on May 16th after this level was tested seven-straight sessions earlier this month.

Any move, or close, on the VIX above resistance at 24, or 26 and the 50-day moving average, should be taken seriously, as it would be a bearish development for the market.

Dow component, Nvidia (NVDA), announced earnings after Wednesday’s close that topped Wall Street’s forecasts. The company posted an adjusted profit of $0.96 a share versus expectations of $0.93 a share. Revenue of $44 billion also cleared estimates for a print of $43.3 billion.

Shares were up 5% in after-hours action and above $141. This should lead to a positive open for Thursday, providing the gains hold. We have been busy this week as we wanted to take advantage of the possible breakout to higher highs. We could still have Alert updates, and possible New Alerts, the rest of the week so stay locked-and-loaded.

Unusual Options Activity (UOA) is a scan traders use to possibly identify option trades that significantly deviate from a stock’s typical volume or open interest. These occurrences highlight atypical trading patterns in the options market, such as a major spike in volume, large blocks of options bought at specific strike prices, or activity that deviates from historical norms.

UOA trades can sometimes indicate traders or investors are expecting a major move in the underlying stock, up or down, and are positioning themselves ahead of an anticipated market-moving event. This could be possible earnings news (beat or a miss), major products announcements, clinical drug trials, major contract awards, or management news (CEO hire or fire).

From a bullish standpoint, a sudden spike in call option buying might suggest expectations of a stock price increase due to the aforementioned events. A surge in a particular put option buying might imply expectations for a stock price decrease or selloff.

There are a number of key signs and filters you can look for and use when scanning for unusual options activity. The first is high volume relative to open interest. In other words, you want to look for a particular option that traded 50,000 contracts (which is five million shares now under control) in a session versus open interest of 100 contracts, or less.

If the open interest is high, traders often look for volume that day that is five or 10 times higher. For example, if open interest is already at 1,000 contracts and volume for the session tops 10,000 - that is a candidate for unusual options activity.

Teva Pharmaceuticals (TEVA) is a recent example where traders are expecting major price movement by early June as there was heavy action on May 21st in the June 17.50 and June 19 calls that expire on June 6th.

Volume approached 75,000 and over 87,000 in the two aforementioned options and is suggesting traders are expecting a pop towards $20. Volume in the TEVA June 18 calls that expire on June 6th nearly tripped 3,000 on Friday and is still showing traders are buying near-term call options.

Other signs of UOA can include large premium trades where institutions are putting millions into one strike price and sweeps, where you see orders that aggressively filled across multiple exchanges. This can signal urgency.

If there is high volume in deep out-of-the-money options from the current stock price, this can indicate unusual options activity as traders are betting on speculative moves. Implied volatility spikes can also suggest traders are expecting a big move over the near-term, and sometimes longer-term.

It is also important to note that not all UOA is directional, some can be hedges and why it is important to do further research. This could include technical and fundamental analysis.

Aside from directional bets on unusual options activity, traders often use credit spreads and straddles or strangles. If doing a credit spread, you will want to analyze whether UOA points to near-term or long-term conviction and construct bull call spreads or bear put spreads, accordingly.

Straddles or strangles are basically hedges where you buy both a call and put option. This will provide protection, or a profit, if a trader is uncertain of the direction and is just anticipating a very large stock increase, or decrease, of at least double-digits.

With any strategy, there are no guaranteed outcomes from following unusual options activity and it doesn't always lead to an expected stock breakout or breakdown.

Shares of Groupon (GRPN) recently broke out to a fresh 52-week high of $26.90 following an earnings beat on both the top and bottom lines. The company reported a profit of 17 cents a share versus forecasts for a loss of 12 cents. Revenue of $117 million also cleared forecasts for a print of $115 million.

In the previous quarter, the company reported a loss of $1.20 a share while estimates were for a loss of four cents. Revenue of $130 million was 2% higher than expectations for $127.7 million.

Groupon provides an e-commerce platform that connects customers with local businesses offering discounted deals. Some of their partners might include local merchants such as restaurants, gyms, and event organizers.

They emphasize a pay-for-performance business model, meaning the merchant only incurs a cost when a sale is made through the platform. Groupon’s revenue is mainly derived from commissions, advertising services, and subscription programs.

The company earns a percentage of each deal sold, typically in the range of 30%-50% of the deal’s value. Merchants can also pay for enhanced visibility through sponsored placements on the company’s website and targeted marketing campaigns.

Shares zoomed 42% on May 8th after closing at $24.21, up $7.23, from the May 7th close at $16.98. On March 12th, shares skyrocketed 43% after earnings to close at $13.98, up $4.21, from the previous session close at $9.77. Back in November, the stock fell 27% despite an earnings beat as revenue missed forecasts.

A mini trading range has formed between $25-$27 since the earnings announcement. There is gap down potential to $20 if shares fall below $24. Continued closes above $26.50 could lead to another breakout with upside to $31 and resistance from January 2022.

Two days ahead of earnings, there was some unusual options activity in the GRPN June 22 (weekly) calls that expire on June 6th, 2025. Volume on May 5th came in at 5,000 for the session with the stock at $16.78. Open interest at the time was only one contract. This suggested traders, or maybe one trader, expected a massive move in the stock. History also showed the possibility was there for an explosive breakout, or breakdown.

These calls options closed at 45 cents on May 5th. After the 42% pop in the stock, these calls were trading at $4.40 on the May 13th close. The return was an astronomical 878%.

We will keep Groupon on our Watch List for another trading opportunity as another massive could be coming.

Volatility Closes Below Key Support (Slightly Bullish)

The stock market was mixed on Thursday with Tech and the blue-chips showing weakness to close out the shortened week. Much of the Dow’s damage can be blamed on the 22% plunge in shares of UnitedHealth (UNH) following the company’s earnings miss.

The Nasdaq closed at 16,286 (-0.1%) with the low hitting 16,181. Support at 16,250 was cracked but held. Resistance remains at 16,750.

The S&P 500 traded down to 5,255 before settling at 5,282 (+0.1%). Support at 5,200 held. Resistance is at 5,400.

The Dow finished at 39,142 (-1.3%). Support at 39,000 held. Resistance is at 39,500.

Earnings and Economic News

Before the open: Bank of Hawaii (BOH), Capital City Bank Group (CCBG), Dynex Capital (DX), Washington Trust (WASH)

After the close: Calix (CALX), W.R. Berkley (WRB), Zions Bancorporation (ZION)

Economic News

Leading Indicators - 10:00am

Technical Outlook and Market Thoughts

Although the bears won the shortened week, the Volatility Index (VIX) closed below a key level of support (30) that had served as prior resistance ahead of the three-day selloff from the beginning of the month. For new subscribers, a rising VIX is bearish for the market while a falling VIX is bullish for the major indexes.

We mentioned a close below 30 last week on the VIX would be slightly bullish for the market. However, this level needs to hold throughout this week with a big push lower towards 27.50 and then 24.

There is wiggle room up to 35 on a move back above 30 with last Monday and Wednesday’s highs at 35.17 and 34.96, respectively. If 35 clears, 40-45 could come quickly.

The Nasdaq fell back below 16,750 on Wednesday with an inside day afterwards, meaning a higher high or lower low was not made on Thursday. The back-to-back closes above this level to start last week was a tease with the top of the downtrend channel at 17,000. We would like to see 17,500 cleared before we would call a possible near-term bottom.

Key support is at 16,000 with a move below this level getting 15,750-15,500 in focus. The low for the month and year is at 14,784 which represented a 27% drop from the all-time high of 20,204 from December 16th.

The Russell 2000 went out at 1,880 (+0.9%) with the high at 1,887. Key resistance at 1,900 easily held. Multiple closes above this level and last Tuesday’s top at 1,902 could lead to a quick trip to 2,000.

Support is at 1,850-1,825. A close below 1,800 likely leads to further weakness down to 1,750-1,725.

The S&P held current support at 5,200 throughout last week with the low at 5,220. There is wiggle room down to 5,100 with a close below this level suggesting weakness to 4,900-4,800. The 50-day moving average recently fell below the 200-day moving average earlier this month to form a death-cross and typically signals lower lows.

Resistance is at 5,300-5,350 followed by 5,400. We would like to see 5,500 cleared and held before saying a near-term bottom is in for the index.

The Dow fell back into its downtrend channel on Wednesday and towards the middle on Thursday. Support is at 39,000 and 1,000-point intervals afterwards. The April 7th low is at 36,611 and represents a 19% drubbing from the December 4th all-time high at 45,073.

Key resistance remains at 40,500 with multiple closes above this level implying additional upside towards 42,000. The 50-day moving average closed below the 200-day moving average on Thursday to officially form a death-cross near 42,200.

After Thursday’s close, Netflix (NFLX) posted a solid beat as earnings per share of $6.61 topped forecasts for a print of $5.67. Revenue of $10.54 billion also outpaced estimates of $10.5 billion for the quarter.

Shares were back above the $1,000 mark in after-hours with the recent all-time high at $1064.50 from February 14th. NFLX is one of our favorite stocks to do credit spreads, and if the gains hold, the action should provide a lift to Monday’s open.

The technical outlook still favors the bears as downtrend channels remain firmly outlined. This is a big week for earnings and there could be trade deals announced so any massive moves, or short-covering, could help the bulls and improve the picture.

Fed Comments Stall Momentum

Wall Street showed weakness on Wednesday after Fed Chair Powell said tariffs could drive up inflation over the near-term while pushing them further away from their goals. He went on to say the central bank could find itself in a dilemma between controlling inflation and supporting economic growth. This spooked the major indexes and forced a rejection at key resistance levels.

The Nasdaq traded to a low of 16,066 before settling at 16,307 (-3.1%). Support at 16,250. Resistance remains at 16,750.

The S&P 500 closed at 5,275 (-2.2%) with the intraday low hitting 5,220. Support at 5,200 held. Resistance is at 5,400.

The Dow slipped to a low of 39,394 while ending at 39,669 (-1.7%). Support at 39,500 held. Resistance remains at 40,500.

Earnings and Economic News

Before the open: Alley Financial (ALLY), Blackstone (BX), Charles Schwab (SCHW), KeyCorp (KEY), Snap-On (SNA), Taiwan Semiconductor (TSM), UnitedHealth Group (UNH)

After the close: Marten Transport (MRTN), Netflix (NFLX)

Economic news:

Initial Jobless Claims - 8:30am

Philadelphia Fed Manufacturing Survey - 8:30am

Building Permits - 8:30am

Housing Starts- 8:30am

Technical Outlook and Market Thoughts

The first clue the market needed to see this week that a possible near-term bottom could be forming is the easing in volatility. That has failed to materialize. Given the fact that it is also the start of the first-quarter earnings season, as well, multiple closes below 30 in the VIX was needed.

The Volatility Index (VIX) flirted with closing below key support at 30 on Monday and Tuesday and for the first time since April 3rd. This also marked the start of a massive three-day selloff that has established a trading range between 30-60 since the close above the former. Tuesday’s low at 28.29 pushed the next layers of support at 27.50-27.

We talked about the bulls likely needing multiple closes below 24-20 on the VIX before a near-term bottom could be CONFIRMED for the market and Wednesday’s low reached 29.48. The reversal to 34.96 was slightly bearish and likely won’t convince traders to stay long over the upcoming three-day weekend.

Resistance is at 35 followed by 37.50. A move above 40 likely gets 45-60 back in focus. A move above 65 and the August 5th peak at 65.73 could get 85 and the November 2023 highs in focus. This is where we also predict a capitulation moment for the market might occur although some may argue it already has.

The Nasdaq cleared and held key resistance at 16,750 to start the week and on Tuesday’s slight weakness. Additional hurdles remain at 17,000-17,250 following Wednesday’s 3% drubbing.

Support for Thursday is at 16,000-15,750. A move below the latter would indicate a retest to 14,800 with the prior Monday’s low at 14,784.

The Russell 2000 closed at 1,863 (-1%) with the low at 1,842. Upper support at 1,850-1,825 was tripped but held. A close below 1,800 likely leads to a further fade back to 1,750-1,725.

Key resistance remains at 1,900 with Tuesday’s top at 1,902. Multiple closes above this level keeps a possible 5% pop to 2,000 in play.

The S&P came within 1% of clearing key resistance at 5,500 on Monday and Tuesday but never really mounted a serious threat. Closes above this level and out of the current downtrend channel would be slightly bullish.

Support is at 5,200 with Wednesday’s bottom at 5,220. There is stretch down to 5,100 with a close below this level implying another retest down to 4,900-4,800 with last Monday’s low at 4,835. The 50-day moving average recently fell below the 200-day moving average to form a death-cross and typically signals lower lows.

The Dow recovered key resistance at 40,500 on Monday but closed back below this level on Tuesday. Multiple closes above 40,500 would suggest strength to 42,000. The 50-day moving average is less than 100 points away from falling below the 200-day moving average.

Support is at 39,500. Closes below this level would indicate weakness towards 37,000-36,500 with the prior Monday’s low at 36,611.

As a reminder, the market will be closed for Good Friday and Thursday is options expiration for regular monthly April options. This could add some extra spice to today’s session, especially if the first wave of support levels fail to hold.

JPMorgan (JPM) announced better-than-expected numbers to start the first-quarter earnings season and provided a much needed lift to the financial sector. The major indexes traded in tighter ranges on Thursday and Friday with key resistance levels that were stretched on Wednesday holding. The prior Thursday’s start of a three-day selling spree has established trading ranges of 10%-11% that highlight support, as well. There could be trade deals announced as early as this week as a number of high ranking officials from across the pond and around the globe are expected to meet at the White House. The biggest wild card remains China and the one country that will help a massive rebound rally, or a drop to fresh 52-week lows.

8:00am (EST)

The stock market showed strength on Friday following comments from the White House that President Trump is optimistic China will seek a deal. The news came after China retaliated by raising its tariff rate on US products to 125% from 84%. Goods from China will see a rate of 145%. Meanwhile, JPMorgan (JPM) announced better-than-expected numbers to start the first-quarter earnings season and provided a much needed lift to the financial sector.

The Nasdaq closed at 16,724 (+2.1%) with the high hitting 16,753. Resistance at 16,750 was cleared but held. Support is at 16,250.

The S&P 500 reached a peak of 5,381 before ending at 5,363 (+1.8%). Resistance at 5,400 held. Support is at 5,200.

The Dow went out at 40,212 (+1.6%) after tagging a high of 40,404. Resistance at 40,500 held. Support is at 39,000.

Earnings and Economic News

Before the open: AstroNova (ALOT), Goldman Sachs (GS), M&T Bank (MTB)

After the close: Applied Digital (APLD), FB Financial (FBK), Health In Tech (HIT)

Economic News

None

Technical Outlook and Market Thoughts

The major indexes traded in tighter ranges on Thursday and Friday with key resistance levels that were stretched on Wednesday holding. The prior Thursday’s start of a three-day selling spree has established trading ranges of 10%-11% that highlight support, as well.

Trading ranges ahead of quarterly earnings aren’t surprising as Wall Street awaits the results that could help spur bullish or bearish momentum. However, a range of double-digits is rare for any time frame, let alone earnings season. This event takes place four times a year and typically when stocks make their biggest moves.

The bulls needed to see some follow thru following the 12% surge in the Nasdaq on Wednesday but that action didn’t happen. We mentioned the technical outlook remained bearish on Thursday morning as death-crosses remain in play for the major indexes. The Russell already warned savvy traders in mid-March lower lows were coming and something we were well prepared for.

The action also showed us clear downtrend channels we can use to watch for lower lows, or when a bottom could occur. The resistance levels are at, or near, the top, of the downtrend channels so this will be helpful clues on keeping us one-step ahead of the action.

The Russell 2000 closed at 1,860 and the session high with key resistance at 1,900 holding. Wednesday’s close above this level teased a possible 5% surge to 2,000 but several layers of resistance at 2,075-2,100 and the 50-day moving average remain afterwards.

Key support is at 1,725. A close below this level likely gets the November 2023 lows at 1,633 and 1,635 in the picture. This area would represent a 34% spanking from the all-time high of 2,466 from last November.

The Nasdaq failed to hold and recover 16,750 to close out the week with additional hurdles at 17,000-17,250. A pop above 17,500 and the top of the downtrend channel might suggest a near-term bottom with more intense resistance at 18,000-18,500 and a freshly formed death-cross from last week.

Shaky support is at 16,000-15,750. A move below the latter would indicate a retest to 14,800 with last Monday’s low at 14,784.

The S&P made a higher high on Friday but struggled at clearing 5,400. Continued closes above 5,500 and out of the current downtrend channel would be a slightly bullish development as there is gap up potential to 5,700. However, the 50-day moving average is just over six points away from falling below the 200-day moving average to form a dearth-cross.

Support is at 5,100 with stretch down to 5,000. A close below the latter would reopen downside pressure to 4,900-4,800 with last Monday’s low at 4,835.

The Dow fell just shy of reclaiming 40,500 and the top of the downtrend channel following Wednesday’s close above this level. There is upside to 42,000 if cleared and held for multiple sessions but the 50-day moving average is less than 1% away from sliding under the 200-day moving average.

Support is at 40,000 followed 38,500. Closes below the latter would imply another round of weakness towards 37,000-36,500 with last Monday’s low at 36,611.

The Volatility Index (VIX) has also established a trading range from 30 to 60 following the prior Thursday’s close at 30.02. On March 14th, we noted a close above 30 would be a blood in the streets moment. The VIX surged 50% the following session to close above 45 with last Monday’s peak at 60.13. We have noted a move above 65 and the August 5th peak at 65.73 could get 85 and the November 2023 highs in focus. This is also where we also predict a capitulation moment might occur.

Same deal as last week as far as support. Closes back below 30 on the VIX would be slightly bullish. However, the bulls likely need multiple closes below 24-20 before a near-term bottom can be confirmed for the market.

There could be trade deals announced as early as this week as a number of high ranking officials from across the pond and around the globe are expected to meet at the White House. The biggest wild card remains China and the one country that will help a massive rebound rally, or a drop to fresh 52-week lows.

The market will be closed this Friday and the regular monthly April options will expire Thursday. The financial stocks will be ones to watch this week as the first-quarter earnings season will start to get going. The next four weeks promises to be exciting but daily homework will be needed to avoid getting whipsawed out of new positions.

We would like to see the VIX get below 24-20 to do credit spreads and new covered call alerts. We are off to another incredible start for the year and we don’t need to force the action. We will still hunt for opportunities but keep in mind we might stay on the sidelines for another week or so. However, we do like the current volatility for directional option plays and triple-digit winners so stay locked-and-loaded in case we take action.

Tech, Small-Caps Officially in Bear Market Territory

8:00am (EST)

Wall Street ended the back half of the week in shock as Thursday’s overall 5% plunge in the stock market carried over into Friday’s action that resulted in another 6% pounding. The two-day losses over the tariff news pushed the major indexes into negative territory for the year and below last August lows.

The Nasdaq ended at 15,587(-5.8%) with the intraday low kissing 15,575. Support at 15,600 failed to hold. New resistance is at 16,000.

The S&P 500 traded to a low of 5,069 before settling at 5,074 (-6%). Key support at 5,000 held. Resistance is at 5,200.

The Dow closed at at 38,314 (-5.5%) after tagging an intraday low of 38,264. Fresh support at 38,250 held. Resistance is at 39,000.

Earnings and Economic News

Before the open: HomeToLife (HTLM)

After the close: Dave & Buster’s Entertainment (PLAY), Greenbrier Companies (GBX), Levi Strauss (LEVI)

Economic News

Consumer Credit - 3:00pm

Technical Outlook and Market Thoughts

The charts from mid-February warmed Wall Street a possible selloff was coming and the technical setups worsened right as the S&P 500 was setting an all-time high. We kept track of the developments from the golden cross that had formed in the VIX to the death-cross that was starting to develop in the small-caps.

In mid-March, our notes had lower lows and August 5th lows coming into play after a failed v-shape recovery and a one-week rally that failed to clear key resistance levels. The close above the 50-day moving average and 20 on back-to-back sessions in late March for the VIX was another bearish development we noted.

Typically after a selloff of last week’s magnitude, there is a three-day feeling out period that most professional traders like to use to start fresh bullish, or bearish, setups. It’s called bargain hunting but you still have to keep track of the trend as lower lows could still be in play.

One of first technical indicators we looked at after Thursday’s and Friday’s closes were the RSI (relative strength index) levels for the major indexes. The Nasdaq’s RSI was at 30 and 24; the S&P’s was at 31 and 23; the Dow’s RSI levels were at 33 and 23; and the Russell’s at 29 and 24.

The previous RSI lows over the past four months have shown nice bounces at the 30 level but there could be additional weakness for a few weeks as March proved. Typically, this level indicates oversold conditions for a stock or index but we have talked about RSI levels reaching the lows 20’s, and in some cases, even the teens. In any event, the major indexes are in extremely oversold territory with the Nasdaq and the small-caps in official bear market territory.

The Russell 2000 plunged to an intraday low of 1,783 with upper support from November 2023 at 1,800-1,775 getting tripped but holding. This represented a 28% plunge off the all-time peak at 2,466 from last November. There is risk towards 1,750-1,700 if 1,775 fails and we wouldn’t be surprised if 1,633-1,635 comes into play. This represents the October 27th and 30th 2023 lows. The 1,700 level would represent a 31% drubbing for the small-caps while the double-bottom would be at 34%.

New resistance from Friday’s gap lower is at 1,875. If cleared, a gap up to 1,925-1,975 could come quickly. Closes back above 2,000 ahead of earnings season, or mid-April, would be slightly bullish.

The Nasdaq took out the August 5th low at 15,708 with key support from May 2024 at 15,600 getting breached but holding on Friday’s trip to 15,575. The intraday low and close puts the index into bear market territory (-23%) from the December 16th all-time top at 20,204. The next levels of support are at 15,250-15,000 with the April 19th and 22nd 2024 intraday lows at 15,222 and 15,265, respectively. This would represent a decline of 25%-26% if the two lowest targets are hit.

Resistance is at 15,750-16,000. Closes above the latter could position Tech to make a run at 16,750 ahead of the 1Q earnings season. A death-cross remains in play with the 50-day moving average on track to fall below the 200-day moving average at the 18,500 level.

The S&P also took out its August 5th low at 5,119 with Friday’s low at 5,069. Upper support from April 2024 at 5,100 failed to hold. There is downside action towards 5,000-4,950 on continued weakness with the April 19th and 22nd 2024 intraday lows at 4,953 and 4,969, respectively. These levels would represent a 19% selloff from the February 19th all-time top at 6,147. An "official” bear market would occur on a close below 4,948.

Resistance at 5,100-5,200. A close above 5,300 could lead to a quick run towards 5,400-5,500 and levels from last Thursday’s initial gap lower. The death-cross formation has gotten more pronounced following last week’s action.

The Dow breached its August 5th low at 38,499 with Friday’s low at 38,264. Upper support from June 2024 at 38,250-38,000 held. The May 30th low is at 38,000 even; the December 14th 2023 low is at 37,051 and would represent a 16%-18% spanking from last December’s record top at 45,073. A bear market would be in focus if the blue-chips fall below 36,283.

Lowered resistance is at 38,750-39,000 followed 39,750-40,000. Closes back above 40,500 and last Thursday’s low at 40,513 would be a slightly bullish development for a quick retest to 42,000 and the 200-day moving average.

The Volatility Index (VIX) zoomed 40% on Thursday and nearly 50% on Friday with the late session peak at 45.61. The August 5th intraday peak reached 65.73 on the VIX with the close at 38.57. The August 6th close was at 27.71 (-28%). Friday’s close above 45 keeps upside towards 60-65 in the mix. In March 2020 the VIX traded north of 85 in back-to-back sessions and stayed elevated above 15 throughout the entire year.

Closes back below 30 to start the new week would help bullish sentiment but multiple closes below 24-20 are needed before we can start to trust any kind of recovery rally.

We often say we don’t care if the market is going up, or going down, as there are ways to profit on both sides. However, we do feel bad for investors, overall, that were exposed to last week’s violent selloff. For investors that don’t know how to use bearish strategies, the pounding in the chest is understandable but better times are ahead.

The charts have been warning for a test towards last August lows and in mid-February, we focused more on bearish setups while limited our exposure going long stocks. This was when a golden cross formed on the VIX, and typically a bullish signal for higher highs. Of course, higher volatility typically means lower lows for the overall market.

We have been using put options for directional action while selling in-the-money call options to lessen the blow in our covered call and dividend income portfolio. Our weekly credit spreads remain solid despite last week’s volatility.

With that said, we still need to watch the charts like a hawk to see when a near-term bottom could form, or if a continued selloff this month will be in play. Remember, the 1Q earnings season starts mid-month and will last throughout May. This means there will be plenty of opportunities for the news cycle (and algorithms) to drive price action.

As far as the tariff news, we think the impact will lessen over the next few weeks and good news on trade deals could help lead a rebound rally. Ongoing negotiations and the lessening of tariffs, percentage wise, or none at all should be positive catalysts for the market. We think deals could come quickly as President Trump likes to move at a rapid pace.

Just a quick note. The VIX held 24 on Monday. The other charts show the S&P holding 5,500; the Russell hanging on to the 2,200 level; and the Dow struggling to hold 42,000. The technical action remains fascinating to watch and why we love doing the homework. The Nasdaq made a fresh 2025 low after trading below 17,000 but holding this level into the closing bell. Stay locked-and-loaded for possible fresh Alerts throughout the week! Remember to sign up for text alerts if you are a new subscriber.

Trading Ranges Signaling Possible Bottom

8:00am (EST)

The stock market rebounded on Friday with the slight gains keeping a tight trading range intact. More importantly, last week’s action may have been the start of a near-term bottoming process for the major indexes.

The Nasdaq closed at 17,784 (+0.5%) after tagging a high of 17,798. Near-term resistance at 17,750 was recovered. Key support is at 17,500.

The S&P 500 hit an afternoon peak of 5,670 while settling at 5,667 (+0.1%). Key resistance at 5,700 held. Support is at 5,600.

The Dow went out at 41,985 (+0.1%) with the high at 42,011. Resistance at 42,000 was topped but held. Support is at 41,500.

Earnings and Economic News

Before the open: Intuitive Machines (LUNR), Lucid Diagnostics (LUCD), Wag! Group (PET)

After the close: Dragonfly Energy (DFLI), KB Home (KB), Oklo (OKLO)

Economic News

PMI Services Index - 9:45am

Technical Outlook and Market Thoughts

Wall Street showed some resiliency last week with the choppy action signaling the start of a possible bottoming process and v-shape recovery. The major indexes mostly remain in mini trading ranges but the more stable action helped break a nasty four-week downtrend.

This doesn’t mean lower lows won’t return, it just gives us better clues on when another breakdown could occur. For now, key resistance levels remain in play, but it was at least a start by the bulls to help alleviate some of the recent selling pressure.

The most important development from last week was the action in the Volatility Index (VIX) as we mentioned multiple closes below 20 after the Fed update would be bullish for the market.

Wednesday’s close at 19.90 was beautiful to see as it held into Friday’s close with the lower weekly low tagging reached 19.15. Upper support at 19-18.50 and the 50-day moving average easily held. Closes below 17.50 and the 200-day moving average this upcoming week would be an ongoing bullish signal.

Lowered resistance is at 20-22.50 with the former getting pushed by the bears to close out the week. Keep in mind a close back above 24 would be a red flag again for the market.

The Nasdaq has traded between 17,500-18,000 over the last 10 sessions with key resistance at 18,000 easily holding. Multiple closes above this level would suggest strength to 18,500 and the 200-day moving average. Additional hurdles are at 19,000-19,250 and the 50-day moving average.

Crucial support is at 17,500 with the monthly and six-month low at 17,238. This represented a 15% drubbing off the December 16th all-time peak at 20,204. A close below 17,250 would likely get 16,750-16,500 in focus. The 16,250-16,200 area represents bear-market territory (-20%) for the index.

The S&P has been in a 10-session range, as well, between 5,500-5,700 with the latter getting stretched on Wednesday and Thursday. More important resistance is at 5,750 and the 200-day moving average followed by 5,850.

Support is at 5,600 with risk back to 5,500 on a drop below this level. A move below 5,500 gets correction territory and double-digit losses back in play with additional selling pressure down to 5,400-5,200.

The Dow is in a nine-session range between 40,500-42,000 following Friday’s inability to clear the 200-day moving average. Multiple closes above 42,000 gets gap up potential towards 43,250 in the mix.

Near-term support is at 40,500 with the March 13th low at 40,661. Closes below these levels would indicate a further fade to 40,000 and prior support from mid-September.

A death-cross officially formed on the Russell 2000 on Thursday after the index closed back below 2,075. This battle ground was held by the bears again on Friday. While continued closes above 2,075 would be nice, the charts show more important hurdles at 2,135 and 2,200. The latter is also the area where the 200-day/ 50-day moving averages have formed a death-cross.

Support is at 2,050 with last Monday’s low is at 2,039. A move below these levels would suggest another backtest towards 2,000 and the bottom of the current 11-session trading range. The intraday yearly low at 1,984 from the prior Thursday briefly triggered a bear market (-20%) for the small-caps.

Another chart we wanted to show you was the action in the iPath Series B S&P 500 VIX Short-Term Futures (VXX). The charts show key resistance after the August 5th lows at 57-58 has held on the previous four selloffs in the market. The prior Tuesday’s peak reached 60.28 with the close coming in at 56.94. This was a good clue ahead of last week’s action that a bottoming process could be forming in the major indexes.

Support is at 47.50 and the 200-day moving average followed by 46 and the 50-day moving average. Closes below these levels would be an ongoing bullish development for the overall market.

The current trading range for the overall market could continue until month end as Wall Street awaits the beginning of the April 2nd tariff kickoffs. While this was the reasoning for the four-week selloff, according to the talking heads, the real reason for the weakness was the technical breakdown out of the uptrend channels in the major indexes.

Once that took place, the algorithms stepped in to drive price action exactly into bear market and correction territory. This is why we do the daily, weekly, and longer-term chart work for the major indexes as it gives us the early jump on trend changes and possible market tops and bottoms.

We warned that February was typically a bearish month for the market. In mid-February, when a golden-cross for the VIX, this confirmed lower lows were forthcoming for the stock market and why we traded light or used bearish setups.

The charts remain bearish for the major indexes but we are preparing for a possible retest towards the 200-day MA’s for the major indexes over the near-term. The first-quarter earnings season will also be getting underway the second week of April so we expect the action to stay extremely exciting over the next few months.

The results from corporate America could help a possible v-shape recovery and maybe a push towards the 50-day moving averages, or, induce fresh yearly lows next month.

Volatility Remains Elevated

8:00am (EST)

Wall Street did a little dip buying on Wednesday with the major indexes remaining in oversold territory. Tech showed the most strength but the blue-chips slacked to keep a bit of uncertainty in play for a near-term bottom forming.

The Nasdaq traded up to 17,800 while ending at 17,648 (+1.2%). New resistance at 17,750 was cleared but held. Key support is at 17,500.

The S&P 500 closed at 5,599 (+0.5%) after making a run to 5,642. Fresh resistance at 5,650 held. Key support is at 5,550.

The Dow tested a low of 41,010 before settling at 41,350 (-0.2%). Support at 41,000 was approached and held. Key resistance is at 42,000.

Earnings and Economic News

Before the open: Dollar General (DG), Futu Holdings (FUTU), Weibo (WB)

After the close: Ballard Power (BLDP), Crown Castle (CCI), DocuSign (DOCU), PagerDuty (PD), ULTA Beauty (ULTA)

Economic news:

Initial Jobless Claims - 8:30am

Producer Price Index - 8:30am

Technical Outlook and Market Thoughts

The major indexes made lower lows to start the week with Tuesday’s bottom nearly pushing the small-caps into bear market territory. The backup support levels we highlighted to start the week came into play and we will just have to see how the rest of the week unfolds.

If the bulls can hold near-term support levels and avoid lower lows that will be a start. Secondly, we would like to see volatility hit lower lows into an up day for the market to close out Friday.

The Nasdaq tested an intraday low of 17,238 on Tuesday which represented a 15% plunge from its December 16th all-time high at 20,204. Backup and upper support at 17,500-17,000 failed to hold. A close below the latter would indicate additional weakness towards 16,750-16,500 with the latter representing a 18% selloff. A correction of 20% would occur at 16,250.

Lowered and key resistance is at 18,000 following Monday’s close below this level. Closes back above 18,600 and the 200-day moving average would indicate a possible near-term bottom. Tuesday’s RSI on the Nasdaq hit 27 and very oversold levels.

The S&P tagged a 10% selloff from the February 19th record high at 6,147 following Tuesday’s fade to 5,528. Key support from mid-September at 5,500 held. A move below this level would imply a further slide to 5,400-5,200. The latter would represent a 15% drubbing from the all-time high. RSI was at 28 on Tuesday’s close and recovered 30 on Wednesday.

Lowered resistance is at 5,700-5,750 and the 200-day moving average. Continued closes above 5,850 would be a more bullish signal for the index.

The Dow failed to hold prior and key support from mid-September at 41,500 on Tuesday and failed to recover and hold this level on Wednesday’s intraday strength. There is risk down to 40,000 on continued closes below this level. If reached, it would represent an 11% pounding from the all-time high of 45,073 from November 4th.

Key and lowered resistance is at 42,000 and the 200-day moving average followed by 42,500. RSI closed at 29 on Wednesday for the index.

The Russell 2000 was down 19% intraday from its all-time record high of 2,466 on Tuesday’s intraday low at 2,001. A move below 2,000 and the August 5th low at 1,993 would likely get 1,975 in focus and bear market territory.

Key and lowered resistance is 2,075 following Monday’s close back below this level. Additional hurdles are at 2,135-2,175. A death-cross remains in focus near the 2,200 level and is a bearish development for lower lows.

The Volatility Index (VIX) continues to give some of the best market clues as far as near-term direction with Monday and Tuesday’s peaks at 29.56 and 29.57. Key resistance at 30 held and a level we said if cleared could induce “blood-in-the-streets” selling pressure. It is too early to say this is a near-term double-top but it looks bullish for the market.

We wanted to see a close below 24 on Wednesday with the intraday low kissing 23.89. If recovered by the weekend, the next levels of support are at 22.50-20.

We have tried to remain active during the month long downdraft and we have been very selective at adding New Alerts. We still need to see if a near-term bottom starts to form to end this week and one that stretched into next week.

Up Friday’s and Monday’s typically suggests money is moving into or staying in the market. Negative Friday’s and Monday’s imply money is moving to the sidelines or out of the market.

Fresh 2025 Market Lows Fail to Hold

8:00am (EST)

The stock market traded on both sides of the ledger on Friday after the bears pushed fresh lows for the year while cracking key support levels for the fourth-straight session. The afternoon recovery failed to produce a higher high than the previous day with the near-term outlook remaining bearish.

The Nasdaq closed at 18,196 (+0.7%) with the afternoon high at 18,243. Lowered resistance at 18,250 was challenged and held. Key support is at 18,000.

The S&P 500 traded up to 5,783 while settling at 5,842 (+0.6%). New resistance at 5,800 held. Key support is at 5,700.

The Dow ended at 42,801 (+0.5%) following the rebound to 42,898. Current resistance at 43,000 was approached and held. Support remains at 42,500.

Earnings and Economic News

Before the open: BioNTech (BNTX), NET Power (NPWR), Telos (TLS)

After the close: Asana (ASAN), Oracle (ORCL), Vail Resorts (MTN)

Economic News

None

Technical Outlook and Market Thoughts

For the week the S&P 500 sank 3.1%; the Dow fell 2.4%; the Nasdaq dropped 3.5%; and the Russell tanked 4%. Additionally, the losses from the all-time highs has entered double-digits for Tech and the small-caps while the Dow and the S&P have kept the losses from the record highs in the single digits.

The Nasdaq was down 12% from its December 16th all-time high at 20,204 on Friday’s trip to 17,768. Key support at 18,000 was breached for the third time in four sessions but held. Multiple closes below this level would indicate additional weakness towards 17,500-17,000 with the latter representing a 16% selloff.

Lowered resistance is at 18,250 followed by 18,400 and the 200-day moving average. Closes back above 18,600-18,800 would indicate a possible near-term bottom.

The S&P kissed an intraday low of 5,667 on Friday which represented a 8% pullback from the February 19th record top at 6,147. Key support from early November at 5,700 and the 200-day moving average were tripped but held. Continued closes below this level would get a further fade to 5,650-5,600 in play and support from mid-September.

Lowered resistance is at 5,800-5,850 followed by 5,900. A close above 6,000 and the 50-day moving average would be a more bullish development of a near-term bottom. This level also represents the bottom of the prior trading range.

The Dow held key support at 42,500 for the fourth-straight session with the bottom hitting 42,175. Backup support levels are at 42,000-41,500 on a close below this level with the latter representing an 8% drop from the lifetime high of 45,073 from November 4th.

Key resistance remains at 43,250. A pop above this level could imply upside to 43,500-43,750 and the 50-day moving average.

The Russell 2000 was down 18% intraday on Friday from its all-time record high of 2,466 after trading down to 2,033 and the August 7th low. Key support at 2,025 held. A drop below this level would likely indicate weakness to 2,000 with the August 5th low at 1,993.

Lowered resistance is 2,100 followed by 2,135. Additional hurdles are at 2,175-2,200 and the 200-day moving average.

The Volatility Index (VIX) tagged a fresh 2025 high of 26.56 with mid-December resistance at 26-28 getting stretched and holding. There is still upside risk to 30 with a move above this level creating a little “blood-in-the-streets” moment for the market.

New support remains at 22.50-20. A close below the latter would be slightly bullish for the market with the possibility of a retest to 17.50 and the 50-day moving average.

The higher high and a higher low on Friday for the VIX remains an ongoing bearish development. Volatility gave us the perfect clue in mid-February the market was headed for lower lows after the golden cross confirmed higher highs on the index.

The tariff headlines will keep volatility heightened as the updates seem to change every day and sometimes even hourly. This is why it is so important to use technical analysis on a daily basis as it helps in tracking the trend (up or down) and to control your emotions.

The charts for the major indexes remain bearish, as expected, following the worst week of the year. Technically speaking, a drop of 10%-20% for an index or stock is considered a correction. Losses above 20% from the peak for an asset is considered a bear market.

The major indexes bounced off oversold levels throughout last week and still face multiple layers of resistance. As money moves out of certain sectors or stocks and into others, there will be opportunities as investors look for safe heavens.

As far as the RSI (relative strength index) levels for the major indexes, 30 held throughout last week with the Russell’s RSI failing to recover this level on Friday. There is still a chance the mid to low 20’s come into play on lower market lows and typically where bargain hunters start to step in.

Bears Resurface as Volatility Spikes

8:00am (EST)

The stock market sank on Friday following weaker-than-expected economic news and the ongoing uncertainty over tariffs. Specifically, the University of Michigan consumer sentiment index fell to 64.7 in February, a whopping decline of nearly 10%. The technical damage was noticeable with the losses also representing the worst trading day of the year.

The Nasdaq tested a low of 19,510 while closing at 19,524 (-2.2%). Key support at 19,500 held. Resistance is now at 19,750.

The S&P 500 settled at 6,013 (-1.7%) after sinking to a late day low of 6,008. Key support at 6,000 held. Resistance is once again at 6,100.

The Dow bottomed at 43,349 before ending at 43,428 (-1.7%). Key support at 43,250 held. Resistance is at 44,000.

Earnings and Economic News

Before the open: Domino’s Pizza (DPZ), Berkshire Hathaway (BRK), BioCryst Pharmaceuticals (BCRX), Owens Corning (OC), Summit Therapeutics (SMMT)

After the close: Cleveland-Cliffs (CLF), Diamondback Energy (FANG), Hims & Hers Health (HIMS), Riot Platforms (RIOT), Zoom Video Communications (ZM)

Economic News

None

Technical Outlook and Market Thoughts

We often talk about the bulls taking the stairs to higher highs while the bears prefer elevator drops to lower lows. We have also been highlighting a month long trading range for the major indexes along with volatility and how February can be a tricky month to trade.

All of these conditions made for a possible explosive move forthcoming the longer the trading ranges played out and that is what we saw on Friday. Key support levels and the uptrend channels were breached and failed to hold, for the most part, with the pre-warnings from the blue-chips and small-caps playing out as predicted.

Let’s start with the Russell 2000 as it was hit the hardest and the index we have been focusing on the most. The small-caps tumbled nearly 3% to close a point off the session low of 2,194. Key support at 2,200 and the 200-day moving average failed to hold. This reopens downside risk towards 2,175-2,135 with the January 13th intraday low at 2,158. It also represented a 12% selloff from the November 25th all-time peak at 2,466. Dip buying immediately came in with the 200-day moving average getting stretched but holding.

Resistance is at 2,225 followed by 2,260. It is imperative the small-caps at least recover 2,202 and the 200-day moving average on Monday’s close and continue to build off that the rest of the week.

The S&P held its uptrend line and key support at 6,000 and the 50-day moving average. An adjusted uptrend channel shows stretch down to 5,975 to account for the January 13th low at 5,773. Continued closes below both these levels would suggest a further slide to 5,850. A drop below 5,850-5,775 would suggest risk towards 5,700 and the 200-day moving average.

Resistance is at 6,100 with last Wednesday’s all-time top at 6,147.

The Nasdaq closed below the bottom of its uptrend channel with backup support levels at 19,500-19,250 coming into focus. The February 3rd low kissed 19,141 and the January 27th low reached 19,204. On both occasions, the 19,250 level held. Additional help is at 19,000-18,750 on continued selling pressure with the January low at 18,831.

Lowered resistance is at 19,750 and the 50-day moving average followed by 20,000. The chart shows a triple top breakdown has formed just above the 20,000 level at 21,000 and is typically a bearish development for lower lows.

The Dow fell out of a 21-session and 1,000-point range between 45,000-44,000 on Friday. Key support at 43,250 held. The previous uptrend channel off the December 18th, 19th, and 20th lows failed to hold. However, a readjusted uptrend channel off the January 10th and 13th lows still shows key support at 43,250 with stretch down to 43,000. The aforementioned lows were another 1,000+ points lower just below the 42,000 level and represented a 7% selloff from the December 4th all-time top at 45,073.

Lowered resistance is at 43,750-44,000 and the 50-day moving average which we mentioned was showing signs of rolling over.

The Volatility Index (VIX) spiked 16% after reaching an intraday peak of 19.03. Key support at 20 was challenged but held. There is upside stretch up to 22-24 with a close above the latter likely leading to panic selling in the market.

We talked about the 50-day moving average showing signs of overtaking the 200-day moving average to form a golden cross. This is typically a bullish sign for higher highs and would confirm ongoing bearishness in the market.

The last four Friday’s have been bearish with losses or slight rebounds on the following Monday and again last Tuesday. This is signaling cash is moving to the sidelines as traders are expecting lower market lows.

There is still risk the current or lowered tax rate won’t get extended or made permanent by Congress and that would be a very bearish development for the market. The talk of possibly two bills instead of one is also creating some market turmoil as the time frame would extend into the latter part of this year.

We wanted to list the mid-January lows as the bears will be gunning for these levels over the next few weeks and into March. It remains to be seen if they will be tested, but more importantly, if the dip will once again be bought.

Timing market tops and bottoms is extremely hard but our charting helps us identify upcoming and major trends. Obviously, any bullish positions over the near-term will likely suffer on a continued market pullback but the dip buying has been ecstatic with very quick v-shape recoveries afterwards.

3:25pm (EST)

The bear call credit spread in First Solar (FSLR) is on track to expire out-of-the-money.

The FSLR February 14th, 2025 172.50 calls and the FSLR February 14th, 2025 175 calls will expire worthless with shares just above $160 as we head into the final half hour of trading. The high for the stock has reached $163.71 with the spread at a a couple pennies.

This means you will keep the entire premium for the maximum gain if shares remain below $172.50 with the Track Record rising to 5-1 (83% win rate). We will be back Monday morning with our next market update at 8am (EST).

Bears Hold Key Resistance Levels

8:00am (EST)

The battle between the bulls and bears continued on Friday with the major indexes pulling back from key resistance levels following opening highs. Disappointing economic news and the possibility of new tariffs weighed on sentiment.

The Nasdaq made a run to 19,862 before finishing lower at 19,523 (-1.4%). Resistance at 19,750 was topped but held. Support is at 19,500.

The S&P 500 closed at 6,025 (-1%) after trading to a high of 6,101. Resistance at 6,100 held. Support is at 6,000.

The Dow tagged a high of 44,857 while settling at 44,303 (-1%). Resistance at 45,000 held. Key support is at 44,000.

Earnings and Economic News

Before the open: Alexanders (ALX), McDonalds (MCD), onsemi (ON), Rockwell Automation (ROK), Tower Semiconductor (TSEM)

After the close: Astera Labs (ALAB), Lattice Semiconductor (LSCC), Vertex Pharmaceuticals (VRTX)

Economic News

None

Technical Outlook and Market Thoughts

The bulls held key support levels on last Monday’s mini selloff while the bears held key resistance levels on Friday. Both sides remain within striking distance of establishing the next major trend but the stalemate between a breakout, or breakdown, continues and has been ongoing since mid-January.

The Russell teased us once again after testing an intraday high of 2,326 on Thursday before tumbling to a low of 2,277 ahead of Friday’s closing bell. We have been talking all year long about closes above 2,325 and the 50-day moving average being a more bullish outlook for the index. Thursday’s action played out like a fiddle and why we always say wait for multiple closes above or below key resistance and support levels to confirm possible price action.

Upper support at 2,275-2,260 is back in play with downside risk to 2,225. Monday’s low kissed 2,229 with closes below the latter two levels getting 2,200-2,175 and the 200-day moving average in focus.

The Dow kissed 44,966 on Thursday’s intraday top with key resistance at 45,000 holding for the fifth time in eight sessions. This area now represents the middle of the current uptrend channel with the December 4th all-time peak at 45,073.

The lack of a higher high on Friday’s open and the pullback afterwards keeps weakness open down to 44,000-43,750 and the 50-day moving average. A close below 43,500 and out of the current uptrend channel would be a slightly bearish development.

The Nasdaq continues to stay within uptrend channel but failed to hold 19,750 after reclaiming this level on Thursday. This would have kept a retest towards 20,000-20,250 in the mix with the December 16th all-time record at 20,204.

Key support remains at 19,250 with last Monday’s low at 19,141. A drop below these levels and out of the uptrend channel could lead to a further fade to 19,000-18,750.

The S&P remains in a 13-session trading range between 6,000-6,100 with the January 24th all-time high at 6,128. We mentioned the prior range in this zone lasted 16 sessions before a 5% pullback. Multiple closes above 6,100 would be bullish for potential momentum up to 6,200-6,250.

Key support is at 6,000 and the 50-day moving average. There is risk down to 5,900-5,850 if 5,925 and Monday’s bottom at 5,923 fail to hold this week.

The Volatility Index (VIX) made a lower weekly low at 14.79 on Friday with key support at 15 getting stretched for the second-straight session but holding. Closes below this level could lead to a retest towards 13.50-12.75.

The close back above the 50-day and 200-day moving averages keeps upside to 17.50-20 in the mix. Monday’s high on the VIX hit 20.42 with additional resistance levels at 22-24.

The VIX has closed below 20 every day since the 24% plunge back below this level on December 20th. The VIX has also closed below 15 just three times over this same time period. Twice ahead of Christmas and on January 24th.

We mentioned February always seems to be a choppy and a very difficult month to trade. It is usually the weakest month in a “bull cycle” that starts in December and can sometimes last into May, based on market seasonality trends.

Friday’s jobs report was weaker-than-expected and what could be the start of a number of economic revisions in the coming months. Ongoing tariff concerns and the fight over to keep the current tax rates could be major headwinds going forward.

Until a clearer trend is established, the whipsaw action will likely continue. We remain in great shape to play the current volatility while also waiting on a more defined breakdown, or breakout, to unfold.

Tariff Talk Trumps Wall Street

8:00am (EST)

Wall Street was looking to cap a big comeback week as much of Friday’s action pushed higher weekly highs following last Monday’s selloff. However, late day selling pressure halted the momentum on news that President Trump would be leveling 25% tariffs on Canada, Mexico and China.

The Nasdaq traded up to 19,969 before settling lower at 19,627 (-0.3%). Resistance at 20,000 held. Support is at 19,500.

The S&P 500 finished at 6,040 (-0.5%) after testing a high of 6,120. Resistance at 6,100 held. Support is at 6,000.

The Dow peaked at 45,054 while ending at 44,544 (-0.8%). Resistance at 45,000 held. Support is at 44,500.

Earnings and Economic News

Before the open: IDEXX Laboratories (IDXX), Lavoro (LVRO), Tyson Foods (TSN)

After the close: Clorox (CLX), J&J Snack Foods (JJSF), Palantir Technologies (PLTR), Rambus (RMBS), Woodward (WWD)

Economic News

PMI Services Index - 9:45am

Construction Spending - 10:00am

ISM Manufacturing Index - 10:00am

Technical Outlook and Market Thoughts

We noted on the charts that the panic pullback last Monday over China’s AI Platform, DeepSeek, may have been a possible overreaction with the major indexes holding key support levels while rebounding the following session. Higher highs were also made throughout the week, and on Friday, before the pullback.

Tech earnings were mostly better-than-expected with a few of the heavy hitters justifying their commitment to AI spending. This helped ease concerns over the authenticity of DeepSeek’s price tag.

The Nasdaq held its uptrend channel off the early August low on Monday. An adjusted uptrend channel off the January 13th low at 18,831 doesn’t make much of a difference and now has the bottom of the channel at 19,350 instead of 19,500. There is stretch down to 19,250 with closes below this level being a warning signal for Tech stocks.

The index struggled clearing key resistance at 19,750 for three-straight sessions before making another run at 20,000 on Friday. Another move above this level gets a retest to 20,250 and the middle of the uptrend channel back in play with the December 16th record high at 20,204.

The S&P also held its previous uptrend channel from the August 5th low on Monday’s pullback and we are now going to adjust it to include the January 2nd intraday low. The current trading range between 6,000-6,100 has now been in play for the past nine sessions with the prior Friday’s all-time high at 6,128. The prior range in this zone lasted 16 sessions. Closes back above 6,100 keeps breakout potential towards 6,200-6,250 in the mix with the latter now representing the middle of the current uptrend channel.

Key support is at 6,000 and the 50-day moving average which represents the bottom of the uptrend channel. The chart still shows mid-month stretch to the 5,850 level with the January 13th bottom at 5,773. These levels will likely come into play on multiple closes back below 6,000.

The Russell regained and held key resistance at 2,300 on Thursday following Monday’s close back below this level. Friday’s peak hit 2,322 before 2,300 failed. We continue to talk about closes above 2,325 and the 50-day moving average being a better setup for the bulls.

Shaky support remains at 2,275 with backup at 2,260. A move below 2,250 and the January 15th and 16th double-bottom low at 2,252 could lead to a more severe pullback to 2,225-2,175. Some good news… the 50-day moving average flattened out on Thursday and Friday.

The Dow bucked the trend last Monday and came within 19 points of a fresh all-time on Friday with key resistance at 45,000 holding throughout the week. Continued closes above 45,000 and the December 4th all-time high at 45,073 gets 45,500-46,000 in focus.

Support is at 44,250-44,000. A drop below 43,750 and the 50-day moving average just below would imply a near-term top.

The Volatility Index (VIX) kissed an intraday low of 14.90 and was on track to possibly settle below 15. The January lows are at 14.59 in back-to-back sessions followed by 14.58. A move below 14.50 this week would be very bullish for the market.

The close back above the 50-day and 200-day moving averages to end the week was a neutral reading. Key resistance is at 17.50 followed by 20-22.50.

The action in the Dow is suggesting a possible broader rotation into other sectors. We often mention the index is overlooked as it its price weighted and only has 30 stocks but this a bullish development. They say a rising tide can lift all boats and the major indexes remain within striking distance of fresh all-time highs.

On the flip side, we also have to watch for a possible double-top in the Dow if the bulls fail to clear and hold 45,000 throughout all of this week. The index lost nearly 3,000 points in 12 sessions following the previous record high.

February has been known to be volatile but could turn out to be a surprise month if the current technical outlook holds. If the VIX clears and holds 20 for multiple sessions, there will likely be a near-term pullback in the market.

Market Rallies 3% for the Week

8:00am (EST)

Wall Street closed out its second consecutive bullish week despite Friday’s slight pullback as traders prepare for the heart of the fourth-quarter earnings season. Tech companies will take center stage this upcoming week with the major indexes at or near record highs.

The Nasdaq made a run to 20,087 before closing lower at 19,954 (-0.5%). Resistance at 20,250 easily held. Support is at 19,750.

The S&P 500 finished at 6,101 (-0.3%) with the high hitting 6,128. Fresh resistance at 6,125 was cleared but held. Support is at 6,050.

The Dow made an intraday push to 44,545 while ending at 44,424 (-0.3%). Key resistance at 44,750 easily held. Support is at 44,250.

Earnings and Economic News

Before the open: AT&T (T), Bank of Hawaii (BOH), Dynex Capital (DX), Sofi Technologies (SOFI)

After the close: Brown & Brown (BRO), Crane (CR), HomeStreet (HMST), Nucor (NUE)

Economic News

New Home Sales - 10:00am

Technical Outlook and Market Thoughts

The S&P was the first index to trade to fresh highs last Wednesday and was up 2.8% for the week. We wanted to see the Nasdaq follow suit by the weekend but the index fell 86 points shy after rising 3.2% for the week.

If a major index is making all-time highs, other indexes or sectors, are likely to join in the bullishness. At current levels, the Dow and Nasdaq are 1% away from fresh all-time peaks and the Russell is 6% from achieving new highs.

The action in the Russell lagged following last Tuesday’s surge above key resistance at 2,300. This level held on Wednesday and Thursday’s flip-flop action afterwards with Friday’s high at 2,322. Key resistance at 2,325 and the 50-day moving average held before the lower close.

There is risk down to 2,275 if 2,300 fails to hold with a close below key support at 2,260 confirming a stalled breakout. The 50-day moving average is also showing signs of rolling over after flatlining since mid-December.

The Nasdaq cleared key resistance at 20,000 on Wednesday and held this level on Thursday’s weakness before a higher close. The December 16th record high at 20,204 held before Friday’s close back below 20,000. The middle of the current and readjusted uptrend channel is at 20,500 on renewed strength with the top showing upside towards 21,250 in February.

Shaky support is at 19,900 with 19,750-19,500 and the 50-day moving average serving as safety nets on a close below this level. The 19,500 level also represents the bottom of the uptrend channel.

The S&P recorded its third-straight record high after ripping right thru its previous trading range between 6,000-6,100 to close out the week. There is upside potential to 6,200-6,250 over the near-term with the former representing the middle of the current uptrend channel.

The top of the trading range held on Friday’s close above 6,100. A drop below 6,075, and last Wednesday and Thursday’s lows at 6,076 and 6,074, would suggest a retest to 6,050-6,000. A close below the latter and the bottom of the uptrend channel would be a slightly bearish development.

The Dow cleared and held 44,000 on Tuesday while reclaiming the 50-day moving average in the process. This was a very bullish development and opened up a retest towards 45,000 and the December 4th all-time high at 45,073. The index has nearly recovered all of its losses following the 10-session losing streak afterwards. Even more impressive, the gains have come in eight days following the January 10th and 13th double-bottom just below the 42,000 level.

There are several layers of key support starting at 44,000 and then 43,500 and the 50-day moving average. A close back below 43,250 and the bottom of the uptrend channel would suggest another near-term top.

The Volatility Index (VIX) fell below 15 on Tuesday, Wednesday, and Thursday but failed to hold this level into the closing bell. Friday’s slightly lower low to 14.58 and close below 15 in a down market remains an ongoing bullish signal.

Continued closes below this level would imply weakness to 13.50 and possibly 12.75 over the near-term. A double-bottom occurred at the 12.75 level on the December 4th and 6th lows at 12.89 and 12.70, respectively.

Resistance remains at 16-16.50 and the 50-day / 200-day moving averages. A close back above 17.50 would ruin the current momentum for the market.

The dip buying that continues to occur is mirroring the previous price patterns throughout 2024. For instance, the Russell was down 9% from its late March peak before a v-shape recovery. The index sank 13% in four sessions from its late July peak of 2,299 to its August 5th intraday low at 1,993 before a wave of buying came in.

Additionally, the Russell had fallen 11% from its November all-time peak at 2,466 to a December 20th low of 2,194 before bargain hunters stepped-in. And more recently, the January 13th test to 2,158 and the 200-day moving average represented a 12% selloff. The other major indexes were also bought on the dips but they weren’t as pronounced as the small-caps pullbacks.

As we mentioned earlier, this is a big week for Tech earnings with Apple (AAPL), Meta Platforms (META), Microsoft (MSFT) and a slew of other high profile companies reporting numbers. The action should produce higher all-time highs, or a possible stalled rally.

S&P Hits Fresh Record High

8:00am (EST)

The stock market showed strength for the third-straight session with the Tech sector getting a boost after President Trump announced a $500 billion artificial intelligence (AI) project. Better-than-expected earnings from Netflix (NFLX) also helped sentiment after shares rallied 10% while closing at a fresh all-time high.

The Nasdaq closed at 20,009 (+1.3%) after tagging an intraday high of 20,068. Key resistance at 20,000 was recovered. Support is at 19,750.

The S&P 500 traded up to 6,100 and new all-time high while settling at 6,086 (+0.6%). Key resistance at 6,100 was topped but held. Support is at 6,050.

The Dow went out at 44,156 (+0.3%) with the high hitting 44,208. Key resistance at 44,250 was challenged and held. Support is at 44,000.

Earnings and Economic News

Before the open: Alaska Air Group (ALK), Freeport-McMoRan (FCX), GE Aerospace (GE), McCormick & Company (MKC)

After the close: CSX (CSX), Intuitive Surgical (ISRG), Texas Instruments (TXN)

Economic news:

Initial Jobless Claims - 8:30am

Technical Outlook and Market Thoughts

The first thing the bulls need to do was have a positive follow thru from the prior week’s rebound and that mission was accomplished with Tuesday’s higher highs, and higher lows. This extended the v-shape recovery off the prior Monday’s intraday lows with key resistance levels getting cleared and holding.

Wednesday’s action was also bullish and pushed the major indexes back into record territory. The only slight concern was the action in the small-caps as they finished the session lower.

The Russell cleared and held 2,300 on Tuesday and again on Wednesday’s slight pullback. This was slightly bullish despite the lower close but will become a deeper concern if this level fails to hold into the weekend. The bigger hurdles remain at 2,325 and the 50-day moving average.

There is stretch down to 2,275 if 2,300 fails with a close below key support at 2,260 suggesting a false breakout.

The Nasdaq came with 136 points of its December 16th record high of 20,204 after clearing and holding key resistance at 20,000. Tuesday’s close above 19,750 was an excellent clue a quick gap up to 20,000-20,250 would come. There is breakout potential up to 20,500-20,750 on continued strength.

Shaky support is at 19,750 with 19,500 serving as backup.

The S&P finally cleared 6,100 (by a half-point) after stalling at this level throughout the first half of December. Multiple closes above 6,100 sets up a run towards 6,150-6,200.

Support is at 6,050-6,000 with the latter representing the prior trading range from late November and thru the first half of December.

The Dow cleared and held 44,000 on Tuesday while reclaiming the 50-day moving average in the process. This was a very bullish development and opens up a retest towards 45,000 and the December 4th all-time high at 45,073.

Support is at 43,750-43,500. A close back below 43,250 would suggest a near-term peak.

The Volatility Index (VIX) fell 5% on Tuesday’s market strength and just missed closing below 15 after trading down to 14.93. Wednesday’s lower low to 14.59 was an ongoing bullish signal despite the fact 15 held. Continued closes below this level would imply weakness to 13.50 and possibly 12.75 over the near-term.

Resistance is at 16-16.50 and the 50-day / 200-day moving averages. A close back above 17.50 would be a slightly bearish development for the market.

Key support levels that need to hold into the weekend are at Nasdaq 19,750; S&P 6,000; and Dow 44,000. These targets also conveniently represent the bottom of the uptrend channels. As for the Russell, the 2,260 level needs to hold on a continued pullback.

Technical outlook for week of January 20th

7:45pm (EST)

We have an update on Rocket Companies (RKT) following today’s strength in the stock.

Position Alert!

Rocket Companies (RKT, $11.08, up $0.66)

RKT January 13 puts (RKT250117P00013000, $2.00, down $0.70)

Entry Price: $0.40 (12/3/2024)

Exit Target: $3

Return: 475%

Stop Target: $2.30 (Stop Limit)

Action: The Stop Limit at $2.30 on the January 13 puts tripped on today’s 6% rebound in the stock.

We still have the RKT February 10 puts open and the longer-term downtrend remains intact.

Here is this week's technical outlook following Friday's close below key support levels.

Technical Outlook for major indexes

Weekly Market Update for 12/30/24 (Video)

Weekly Market Update for 12/23/24 (Video)

Weekly Market Video Update for 12/16/2024

11:25am (EST)

Our NWL trade has just hit a six-bagger. Let’s lock-in half profits at current levels.

Profit Alert!

Newell Brands (NWL, $11.34, up $1.02)

NWL January 10 calls (NWL250117C00010000, $1.40, up $0.70)

Entry Price: $0.20 (11/25/2024)

Exit Target: $0.80, raise to $1.80

Return: 600%

Stop Target: 40 cents, raise to 90 cents (Stop Limit)

Action: Close HALF the trade at current levels.

Raise the Exit Target to $1.80. Raise the Stop Limit at 40 cents to 90 cents on the other half.

Our near-term Price Target is at $11.50. With RSI pushing 80, we want to close half the trade and let the rest ride.

Weekly Market Update for 12/9/24 (Video)