The SPX is sitting in a big wedge with ideal squeezes firing on the 4-hour, 2-hour, and 30-minute charts, so I am leaning toward at least one more pop before this move is done. I am long the names that look strong to the upside, not shorting the top, while I keep a close eye on my exits.
AMD dropped 4.21% with the semis today, but the trend is still intact. It only pulled back to the 21 EMA, wicked, and bounced, and I’m still looking for it to trade higher into earnings. A lot rides on what ASML and Taiwan Semi do this week.
The market is as noisy as it has been in a while, with correlation so low that stocks are diverging even inside their own sectors. So I am cutting through it by focusing on the one chart I see most clearly: SPY, closed 90% bull with a daily squeeze. In tonight’s video I cover the bullish seasonality into next week, a yellow-light divergence on the Nasdaq, and the setups I am watching including UPS, DELL, and AMD.
In this video, I’m watching the potential for a bigger market correction, but I do think the timing may still be a little early. I break down why rising 10-year yields, July expiration, and the VIX squeeze are important signals to monitor over the next couple of weeks as the market decides whether volatility is ready to expand.
