Everything is overbought now... What really matters is (SOXL Tesla Micron Intel Bloom Energy Palantir Tech SanDisk Alphabet
- What to look for
- You can examine an example of responding to overbought conditions by treating Micron's earnings as a turning point and checking resistance at $560 for SOXX, $748 for QQQ, and $779 for SPY alongside support levels for individual stocks.
- Why it matters
- This helps interpret the conditions used to assess a pullback followed by a rebound, based on short- and medium-term overbought indicators and whether support or resistance levels are breached.
AI summary
The speaker recalls warning about short-term overbought conditions on September (month 9) 24, before Chuseok, and notes that declines continued after taking profits in Palantir, Intel, and ARM. The speaker says that with the market overbought in both the short and medium term this week, sideways movement is more likely than a strong rise, and is watching whether the upper boundary of the triangle consolidation holds as support and whether a rebound emerges in the middle to latter part of the week. Because Micron's earnings after Wednesday's market close will influence market direction, the speaker recommends managing risk and keeping a possible pullback in mind unless there is an earnings surprise. Citing resistance at $560 for SOXX and the previous high for SOXL, along with QQQ's failure to break above $748, SPY's failure to break above $779, and continued weakness, the speaker presents a scenario of a pullback followed by a rebound. The speaker identifies key support levels of $1450 for SanDisk, $178 for SK hynix ADR, $352 for Tesla, $690 for Meta, $760 for SPY, and $700 for QQQ. The speaker outlines individual conditions: a short-term bottom for Alphabet, support at $240 for Bloom Energy, a 25% profit range for Qualcomm, another rise next week for ARM, and support at $107 for Intel. All directional outlooks are the speaker's conditional judgments, not definitive short-term price predictions.