the market has been selling off hard, but today, some green shoots started to emerge will we see a stock market reversal?
📉 QQQ down four days straight—now testing major support.
📉 Stocks like Amazon and Meta reversed hard off key levels.
📉 Oversold conditions everywhere—time to watch for bounces.
Are we finally at a bounce point? Let’s break it all down.
Market Breakdown: Are We Due for a Reversal?
✅ QQQ tested key trendline support and held.
✅ SPY also reversed off lows, though it wasn’t a clean move.
✅ Stochastic RSI is deeply oversold—suggesting bounce potential.
✅ If we gap down tomorrow, look for a double bottom opportunity.
The biggest factor? How the market reacts tomorrow morning at the open.
🚨 If we gap up, we need to see confirmation of strength.
🚨 If we gap down, watch for a quick undercut and reversal.
Best Trade Setups for Tomorrow
1️⃣ Bounce Plays: Stocks Holding Major Support
💥 Palantir ($PLTR)
- Massive pullback from $125 to $85.
- Now sitting on the 50-day moving average with 10 RSI.
- Trade Plan: Watch for a gap down and reversal.
💥 Robinhood ($HOOD)
- Earnings winner that’s now oversold.
- Sitting at the 50-day moving average + lower Bollinger Band.
- Trade Plan: Looking for a reclaim of $14.50.
💥 Meta ($META)
- Double support at 50-day moving average & old breakout level.
- Reversed off lows today.
- Trade Plan: Looking for a weak open, then red to green move.
💥 Amazon ($AMZN) – Best Reversal Play!
- Hit $204 and reversed nearly $10 intraday!
- Strongest bounce setup with confirmed strength.
- Trade Plan: Buy on minor pullback.
2️⃣ Oversold Stocks Ready for a Snapback Rally
📊 JPMorgan ($JPM)
- Strong financial stock—now at 50-day moving average.
- Stochastic RSI at 12—deeply oversold.
- Setup: Looking for a support hold and bounce.
📊 ($OKlO)
- Cut in half from highs!
- Sitting at 50-day moving average + breakout retest.
- Setup: A gap down and reversal would be ideal.
3️⃣ Bitcoin-Related Stocks: Will $IBIT Bounce?
🚀 Bitcoin has been hanging at $88K.
🚀 If it undercuts and reclaims, we could see upside in $IBIT.
🚀 Waiting for confirmation of strength before taking a trade.
Key Levels to Watch
$SPY:
- Support: 500, then 490.
- Resistance: 510-515.
$QQQ:
- Support: 510, then 500.
- Resistance: 530.
📌 If we gap down and hold support, we may get a bounce play. This could start a stock market reversal
📌 If we gap up and fail, expect more downside.
Trading Plan for Tomorrow
✅ Focus on bounce setups in oversold names.
✅ Use options on strong tech stocks like $META and $AMZN.
✅ If we gap down, look for reversals. If we gap up, wait for confirmation.
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