Market pullback?

Good morning fellow traders and welcome to the most important charts of the day!

We had a mixed day in the markets yesterday with a few bright spots such as $AAPL, $TSLA, $NFLX and $FB which either posted new all time highs or reclaimed important resistance levels. We managed to avoid the plunge in crypto by following our sell rules. Hope you followed. Remember, at Eclubtrading, We Grow Together!

With futures down this morning, we expect an increase in volatility as European markets are deep into red. See if the US tape offers some red-to-green trades for cashflow from yesterday’s strongest names. If not, it is wise to get out of the way, and wait for a better set-up once the dust settles.

$QQQ chart

Tech has been on fire yesterday despite overall weakness in the $SPY. It managed to post a new all time high at 382.96. Several names within the sector had impressive candles and are candidates for a red-to-green trade today. For support, see if it can hold above 380. The next support level is at the 8EMA around 378.

$FB chart

The social media giant had an impressive afternoon as it managed to reclaim 377.55. It gave us an impressive day trade to 383. For today, it is a candidate for a red-to-green trade if the market allows it. Holding above 378-380 would be constructive for this recent active sequence. The all time high is at 384.33.

$TSLA chart

Tesla gave us a great day trade as it pushed above 742 the pivot weekly resistance. Today it announced the deliveries for China which are a bit better than expected. It is a candidate for a red-to-green trade, and will be an important gauge for market sentiment in the EV sector. 760 is pivot resistance for today. There is some space on the chart to 780 in case the market rallies.

$PYPL chart

Despite weakness in the crypto arena, $PYPL posted a decent candle as it managed to close above 292. It has some catalysts at the end of the week. It is looking very constructive above the moving averages. See if this can be a candidate for a red-to-green day trade. The next big resistance area is 294-295, which coincides with the earnings gap from a few months ago.

There are a few other candidates for a red-to-green day trade such as $AAPL and $NFLX but they are a bit more extended. Keep in mind that $NFLX was upgraded this morning and might have an initial push.

We advice caution heading into today’s open and to look for any relative strength either in the indices or among the individual stocks.

Have a successful trading day!

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