The market reversal or fakeout question is front and center right now. The indices have seen a three-day bounce, with $QQQ finishing just under the 200-day moving average. But is this move real—or just a bull trap?
Let’s dig into the price action, the levels that matter, and which trades I’ll be watching.
Where We Stand: Key Market Levels
- $QQQ and $SPY both sit right under major resistance at the 200-day MA and anchored VWAP.
- The IWM still lags and looks like a bear flag.
- Market breadth is improving (T2108 at 28), but we haven’t seen that powerful breadth thrust—yet.
- If we gap up tomorrow, expect some fading. A bear trap is likely before the next leg higher.
Short Watchlist: If We Fade at Resistance
1. $CVNA – Ripped 50+ points, now testing the 50-day MA.
2. $APP – Testing resistance with weak volume.
3. $CELH – Approaching 200-day MA. Stretch alert.
Long Watchlist: Inside Days & Rubber Band Swings
Inside Day Setups:
- $AFRM & $UPST – Tight range after big thrusts. Great for day trading.
- $AMD – Big move followed by compression. Setting up nicely.
- $PALANTIR – Quiet consolidation after wild volatility.
Rubber Band Longs (Swing Setups):
- $BEKE, $BILI, $HSAI – All sitting at 50-day MA + stochastic oversold conditions.
- $TIGR – Flagging perfectly at 9 EMA post-earnings.
- $ZS – Setting up for major range breakout. Needs an inside day to catch up.
- $OKTA – Relative strength while the market dropped. Strong price structure.
Final Thoughts
We’re right at a critical juncture. If the 200-day moving average holds, bulls might push higher—but any weakness could spark another pullback. This is not the time to be a hero. It’s a scalper’s market with short windows for opportunity.
Guys are we are starting up bootcamp class tomorrow! If your a past student check your email for the links! New folks we got some room!
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https://bullsonwallstreet.com/live-60-day-bootcamp/
If you want a little homework and some weekly reading here are some articles I curated that I thought were a good read ->
