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Where Do We Go From Here?

July 21, 2023
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G. Allan Collins

Hey there! Today’s market was a roller coaster, with SPY closing down 0.66% at $452.18. We did manage to bounce off the support zone at $451.44, so not all bad news. We stayed a couple of bucks above the low 450’s support but if we start to sell off on high volume at any point if your long, I would keep close stops because if the high volume selling comes in we could  come down towards the  20 day moving average at around 444.

For those looking to go short, keeping an eye on the 455 mark might be a good idea. If we break through that, we could head towards the 460-461.75 Zone. On the flip side, resistance is lurking at 454.37, 456.57, and 458.53. SPY held up better than expected, but always let the price action guide you. Trust the charts, not the noise!

As for the NASDAQ 100 Triple Q’s, they had a tougher time, closing down 2.31% at 376.76. Tesla faced some selling pressure after earnings, but the bulls found some relief bouncing off the 10 Day moving average. If the selloff continues tomorrow, we might encounter some support at the gap, possibly leading to a test of the rising 20 daily moving average around the 370s. For a more bullish outlook, we need to break through 387 and target 395 next.

The Dow Jones had a solid day, closing up 0.50% at 352.43. Remember that breakout above 346? It’s been smooth sailing since then, and we’ve been outside the Upper Bollinger Band for three days straight. There’s a gap to fill below at around 350, and a critical resistance at 353. If we reject that, watch out for the gap fill just below 350, with critical support still at the breakout point of 346.

As for the Russell 2000 IWM ETF, it dipped 0.71% and is now coming back down to the breakout level at 195. As long as that breakout holds, we might still have a shot at reaching 198 and 201. But a break below 195 could mean support around 191.5 and the gap at 190. We’re remaining bullish above the breakout at 188.

The VIX was up today closing at  $13.89 up 1.67% which indicates that there’s still no major panic in the market. If it spikes above 15, though, we might see some more dramatic selling.

Bitcoin’s holding strong above 29,000 and in a bull flag pattern. Just keep an eye on the key levels: if we go above 31,000, we might head to 35,000, but a drop below 29,000 could take us down to 28,000.

Tesla had a rough day, down 9.74% closing at 262.90 after their earnings report we closed below the 20 day moving average and broke critical support we are looking at 241 and the gap at 235if the selling continues.

We are Still Short TSLA from last week, we nailed it!

We are Still Short NVDA from our recent short sale at $280.10 we nailed it as well.

Remember, stick to your plan, pay attention to price action, and take profits when you can. If you’re a day trader, buckle up for more wild rides ahead!


G. Allan Collins




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