Hello Dedicated Subscribers,
Once again, we’ve successfully anticipated a rally in both the S&P and Nasdaq, showcasing the power of informed analysis.
The S&P is proving to be remarkably resilient. Despite the market's fluctuations, it has rebounded impressively from the 4100s, with the most recent dip being swiftly bought up, resulting in a gain of over 100 points in just a few days. While the Russell and the S&P haven’t yet hit all-time highs (ATHs), the S&P is not far behind, showing strong potential to join the ranks.
The discussion on "Higher for Longer" – is it about interest rates or the stock market? Well, our analysis suggests it might be both. The SPX is currently above a significant support zone at 4763.89, which was re-tested on the small time frame at the end of the day and held tuff. Maintaining this level is crucial for the index to continue its march towards ATHs. We’re eyeing the next key level at 4784.66; surpassing this could smoothly lead us towards our next target at 4804.51 and then new ATHs which is less than 1% away!!!
Turning our attention to the Nasdaq, particularly the QQQ, it has unfolded precisely as described in our morning outlook. We anticipated a hold above the Weekly@ 405.57 and a subsequent push to the next level, and the market did not disappoint. This strategic move was rewarded with a 1% increase directly into our target at 409.52, as planned it experienced some end-of-day profit taking as traders took money at this significant level.
Now, the weekly level on QQQ @ 409.52 becomes crucial for future movements. It’s a resistance point for now, but breaking above it could serve as a robust support, potentially driving Nasdaq/QQQ, and with it the Tech sector, to new heights.
Looking ahead to tomorrow, with the CPI report on the horizon, some might speculate about a market downturn. However, our charts, especially for the SPX, suggest a steadier outlook. The key here, as always, is patience.
Happy trading, and I look forward to bringing you more insights in tomorrow's Morning Insight. Let’s keep navigating these markets with a sharp focus and strategic thinking.
Happy Trading
Ryan Bailey - AKA Master Bailey :)