📺 A POTENTIAL RECOVERY, BUT FOLLOW-THROUGH REMAINS THE BIGGEST QUESTION + $TSLA MULTIWEEK RUN? + $NVDA MOMENTUM?
In this Short video, I discuss the market's attempt to recover after months of frustrating, range-bound trading, with $TSLA finally showing real leadership and $NVDA displaying early signs of improving momentum.
But can these moves develop into sustainable rallies, or will traders face another round of failed breakouts?
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$SPY has been trapped in a trading channel since April. Every time the market looks ready to break out, momentum fades. Every time it approaches a breakdown, buyers step in.
Meanwhile, individual stocks have suffered significant declines, and traders have struggled with a lack of follow-through.
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Monday offered some encouraging signs.
Several stocks turned red to green (we had some great trades), $SPY reclaimed Friday's $763.50 high and pushed toward $767.
The next upside reference is $774, while $758 remains critical weekly support.
As long as that level holds, the broader technical structure remains intact, although it's still vulnerable.
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$TSLA has been the standout. After a massive correction from $482 to $297, followed by months of failed rallies and consolidation, #Tesla finally produced a convincing breakout pattern.
The stock pushed through $386–$388 and rallied toward $397, demonstrating the kind of leadership I haven't seen from mega-cap technology stocks in quite some time.
The question now is whether #TSLA can transition from a one-day breakout into a multiweek swing trade.
$388 is the preferred support level, with $383 marking the lower boundary of the setup. Holding that zone could allow Tesla to consolidate, break above $397 and potentially reach $402.
My strategy involves trimming into strength, buying controlled pullbacks near support, and maintaining a core position if the stock continues working higher.
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$NVDA is also showing tentative improvement.
After repeatedly disappointing traders with promising setups that quickly reversed, #Nvidia finally demonstrated a little strength above $213.85.
It's not a blockbuster breakout, but the fact that the stock isn't immediately giving back its gains is encouraging.
Semiconductor stocks $SOXX $SMH are showing some stabilization, although meaningful leadership remains absent.
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The Mag7 remain mixed, with some earnings approaching.
– $META continues to struggle with failed rallies post earnings and concerns surrounding enormous AI infrastructure financing requirements. The $625–$627 area could provide near-term support.
– $GOOGL remains technically weak after breaking below its ascending channel. $AAPL is consolidating after a failed push higher, while $AMZN lacks a compelling setup.
– $MSFT is attempting to rebuild, with $515.17 as a potential long-side risk reference ahead of earnings.
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The bigger challenge is continuity. Too many stocks have produced bullish breakouts, only to gap lower the following session and completely erase their gains. That's why I remain hesitant to hold positions overnight.
With the Fed decision, major technology earnings and midterm elections approaching, everything could change quickly.
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So, the market is showing signs of life, but one strong session doesn't establish a new uptrend.
The real test is whether stocks can hold support, build on their gains and finally deliver the sustained follow-through that has been missing for months.
As always, stay tactical.
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If there’s a real meeting with Iran. $USO will break yesterday’s low
Scott Redler retweeted
$NVDA is expanding its $META partnership beyond GPUs into standalone Vera CPUs and security software for AI agents.
Pretty interesting as AI shifts toward agents because Nvidia is now going after CPU spending traditionally held by $INTC and $AMD while building another layer of software lock-in beyond CUDA.
It would be nice if we can stay with $tsla for more than a day or so.
Mixed markets around the world as things stabilized a bit yesterday. $SPX futures are +20 with Iran headlines helping oil come in, while 7612 remains key pivot support for the week. Big earnings ahead and the two-day #FOMC meeting starts today, so plenty to watch.
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