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Why SPY $398 Matters Now


SPX futures are flattish after a big two-day move. The index did a Red Dog Reversal buy when it reclaimed 3939 and had power Friday to see 4048. I'd think we have a bit of digestion into Powell Tuesday, JOLTs numbers on Wednesday, and NFP Friday. Holding 3990-4010ish shows some commitment.

SPY reclaimed $393.38 Thursday and had power to see $404.45 Friday. This morning it's down small. Holding $402ish would be impressive to show high-level digestion. The active bulls need to hold $398ish this week to keep commitment to late last week.

QQQ did a Red Dog Reversal buy as it reclaimed $290 Thursday to see $299.92 on Friday. AAPL’s upgrade by GS helps.

It should be an interesting week as we see if the active bulls can keep the ball.

Now let's dig into some individual names.

AAPL did a Red Dog Reversal buy Thursday. MS made it a top pick Friday. It hit a high of $151.11. This weekend GS upgraded it with a $199 target. I'd trim into strength, but it will be a focus. It will be hard for SPX to be so weak if this acts well. I’d trim and see if it builds or fades.

TSLA made a low after its event at $186 and had a nice two-day move to $200.48. It might need to digest a bit. Holding $193.75 keeps it constructive. There is news they had to cut some prices again. We'll see how it reacts.

META is one of the better-acting stocks for now. Some are long vs. the $167.66 pivot. On Friday it hit $186+. I'm going to try and stay long. If the market holds in, this should see a move above the post-earnings high at $197+ in time.

MSFT finally had a strong candle Thursday and then it hit a high of $255.62 Friday. It has some room to move, but it’s not special.

Scott Redler's positions disclosure as of 2023-03-06 at 7.24.55 AM

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