The expectation was that SPX made its way towards 5900 today. We hit 5908 this morning and spent most of the day rallying and grinding higher. Given the price action, an assumption can be made that a short term bottom could be in.

On the daily chart we have printed 4 red candles in a row. However, an argument could be made that today’s candle signifies a bottom might have been found due to the long wick.

While 4-5 red candles in a row do happen, they are pretty rare and we could be reaching levels of exhaustion on the downside.

Looking at the 15-minute chart of this move down, we can also see a strong bullish candle at the bottom today. We spent most of the day grinding away from that level around 5900.

Before we do confirm a short term bottom, there will be some key levels to watch for. To begin with, any upside move needs to break over 5980, which was where the current bounce seemed to have stopped.

Above that we have 6013 which is the mid-point for the weekly range as denoted by the white dotted line.

The next critical level is around 6028, which also aligns with the bounce we had on Monday, which eventually failed and we dropped from that level. I do not expect 6028 tomorrow, but stranger things have happened. However, it is possible we get a bounce up tomorrow that’s sets up a scenario for 6028 to happen before the week ends.

Of course, any break below today’s low is trouble and we still have half the week to go. However the probability is that we don’t stay below 5900 for too long, at least this week.

Given the price action today, the expectation should be 5980-6000 tomorrow and possibly 6028 by Thursday.

But of course, our good friend NVDA has earnings tomorrow and that may set the tone for SPX and NDX.

NVDA bulls failed to hold the line at 130 and we fell into the lower box. There was an attempt at a recovery but we can see NVDA started to fade off from 130 once again. NVDA earnings will make things interesting for everyone.

GOOGL finally hit the price target of 175.

The stance on GOOGL has changed from bearish to neutral-slightly bearish. We could find downside momentum with the market but I think GOOGL should be one of the leaders should SPX and NDX rally.

TSLA also hit the target of low 300s. In fact we broke below 300 today which confirms that the bearish trend in TSLA is quite strong.

It is possible TSLA is due for a bounce but I think the trend remains pretty steady to the downside and I don’t expect the rallies to sustain. TSLA could be heading towards 255.

And once again, the poster child AAPL continued to be strong for most of the day while everything else sold off. AAPL was green for almost the entire session until the end.

Interestingly enough, AAPL did hit 250 on the dot today as well. We could very likely be heading back to test the all-time highs on AAPL, especially if SPX and NDX rally together.

Overall, the expected range is playing out nicely. In just 2 days, we have hit the lower end of the range and seem to be bouncing. There are still 3 trading days left so a lot could happen. The expectation is that we continue to bounce towards the mid-point and then we could see some volatility come back.

As always, watch for the important levels and the price action as we get to those price points. If the market sharply reverses at any of those key levels, I would not fight the trend.

Good luck!