SPX had another roller coaster day, with big chip/memory stocks weighing it down once again. As has been the case, NQ was selling off pretty heavily and pretty much dragged SPX down with it for most of the morning. While there was an eventual rally, things stalled out and SPX faded again into the close.

The Dow was up, Nasdaq was down and SPX was caught flat in the middle. I spoke about this over the weekend in my video and today was just another example of that. Non-tech stocks, especially finance and retail, seem to be bouncing. There is definitely a major rotation out of big AI trade happening.

SPX continues to be mostly flat for the week. These past 2 days were supposed to be the “uneventful” ones for the week, but obviously that hasn’t been the case. It’s crazy to think that the real show actually starts tomorrow. We have FOMC, followed by Microsoft and Meta earnings tomorrow and then we head into Apple and Amazon on Thursday. The volatility is just getting started.

Not much to report on the daily chart, the last 4 candles are actually pretty sideways and stalled out. Last Thursday SPX gapped down about 100 points and that range has not been broken yet, not to the upside and not to the downside. For now, that low from 7/23 continues to hold on SPX.

That low currently sits at 7376 and we’ve certainly come close the past couple of days but for now it has held.

The same cannot be said for NQ however. Following up from the chart yesterday, we can see NQ came close to entering the grey box for now we have a long wick holding that level. The long wick is somewhat of a bullish sign, but we’ll see if tomorrow has any follow through or not.

As mentioned above, 7376 is the level to watch for on SPX to the downside. To the upside, we have the high from yesterday around 7480.

For now, this is the assumed ranged on SPX. A breach to either side should likely create momentum to push the move higher – at least in an ideal scenario.

The fun begins tomorrow with FOMC into major MAG 7 earnings. The week has already been a rollercoaster, especially for the Nasdaq. As traders, we should all be excited for what’s in store as we head into the latter half of the week.

It should be fun!

Good luck!