I hope everyone had a great Labor Day weekend.
SPY was up 0.19% to close at 451.19. We came close to filling that Gap at 455 we have resistance just above here at 453.35 and after that look for resistance in the 455.50 range. It’s possible we are going up there to fill that gap but as mentioned there is strong resistance right before we get there so we could have a gap and trap. We have a triple bottom on the VIX here, so I am more inclined to focus on SPY Support. If SPY breaks the support at 448, that is a very early warning sign that you need to get risk off because it’s very possible we’re coming all the way back down to 442 and if we break there, next stop is 430.
THE NASDAQ 100 Triple we were down 0.11% on Friday to close at 376.74 and the triple Q’s hit their upper gap price target, which was that gap above 380, which is more evidence that SPY is likely going to fill its gap next. Now the triple Qs are bullish as long as they’re above 375. So just like SPY, do not assume we’re going lower unless price action breaks that support level. And on the triple Q’s, the critical support will be at 375 and then down around 370. Above 375, we have resistance at 382.93 and 385.
Tesla has critical support at 245, and if we break 245, you’re looking for strong support at 230. And if we lose all that support, you have the gap fill below 218. Upside resistance 258, and if we break 258, we’re likely going straight to the 270s. Remember we are short TSLA and NVDA
I am taking a week off. I’ll be back next Monday.
G. Allan Collins