Market Breakout Watch: Top Stocks & Trade Setups for This Week

The stock market is right at the breakout level—the S&P 500 (SPY) and Nasdaq (QQQ) are testing key resistance zones. There could be a market breakout in the works here.

This week will be critical:

If we break through, and get a market breakout expect a strong move higher.
If we stall, we may need a pullback before the next leg up.

Let’s break down the best stocks to trade this week.

Market Overview

Breakout or Fakeout?
- The S&P 500 ($SPY) and Nasdaq ($QQQ) are sitting at resistance.
- The market has ignored bad news and continues to push higher.
- Inside day expected? We could see a pause before the next move.
China Stocks on Fire!
- Spec money is flowing into China names—PDD, JD, IQ all showing strength.
- Watching for follow-through in these hot names.

Top Stocks to Watch This Week

Momentum Breakout Plays

Affirm (AFRM)
- Key Level: $80 breakout could trigger another leg up.
- Strategy: Look for a weak open, then a red-to-green move.
Roku (ROKU)
- Earnings breakout in play.
- Setup: Entry on a breakout above $110 or a dip buy.
DraftKings (DKNG)
- Fresh all-time highs—momentum is strong.
- Watch: Could see continuation but may need a rest day.
Verve (VERV)
- Low-float runner with a strong chart.
- Setup: Breakout over $10 triggers upside momentum.

China Tech Stocks Heating Up

Pinduoduo (PDD)
- China momentum leader—watch for a breakout over $123.
- Key Level: If volume holds, we could see a strong move.
JD.com (JD)
- Nice range breakout setting up.
- Trade Plan: Look for an entry over resistance or a pullback buy.
(IQ)
- Breaking out after long consolidation.
- Setup: Watch for strong volume confirmation before entering.

Reversal & Pullback Setups

Lululemon (LULU)
- Massive sell-off on Friday—could be a short on any gap-up.
- Strategy: If it spikes early, look for a fade setup.
Super Micro (SMCI)
- Big range break forming—breakout
- Watch: If it clears $53-54, this could squeeze higher.
Fannie Mae (FNMA)