The S&P 500 jumped 2.5% today. When Corey Rosenbloom sat down to record tonight’s video, the index was sitting right on 7600.
Corey had 7600 in his game plan before the move started. He pulled it straight off his volume profile.
Corey makes his calls from price levels. He trades a 1 to 3 day window and lets the profile show him where price travels next.
He’s done this before. On October 30, he targeted 7745 at the midpoint of the profile, and the post election high printed at 7746.
Today’s rally came with a twist. Corey calls it the army without the general.
Nvidia, one of the largest stocks in the market, finished as the weakest name in the S&P 500. The army marched anyway with all 11 sectors green and AMD up 12%.
Stronger jobs data, rising Q3 earnings, and a sharp drop in crude helped fuel the bounce. The selloff also found support near 7400, where prior lows lined up with the 200 day simple moving average.
In tonight’s video, Corey walks through the levels and catalysts behind his plan:
- The bull reversal buy from 7350 hit its 7500 target near the open. The next level at 7600 marks the underside of the profile, which is right where price sits now.
- The Russell 2000 game plan ran from 2730 toward 2825, the midpoint of its profile. The Russell had flashed a sell signal on Wednesday and Thursday during the post election drop.
- The S&P 500 gained 2.5%, the Nasdaq climbed 4%, and the Russell rose about 3.5%. Technology led the sectors with a gain of about 4%. Discretionary added 3%.
- Crude faces a ceiling near $100 to $105. Corey says a break above it would likely send oil toward $115 and push stocks much lower.
- The yearly high has landed in December in recent years, with 2022 as the exception. Corey sees room for a rally back toward the 7800 high and possibly beyond.
The S&P 500 now sits about 4% from its all time high. This week brings CPI, PPI on Friday, Fed testimony, and earnings from Applied Materials and Cisco. Bonds close for Veterans Day while stocks stay open.
Nvidia reports next week. I’ll likely be positioning earnings trades with butterflies, so watch for those.
