Each afternoon, [music] real setups are broken down with entry strategies and the technical reasoning behind every trade. [music] This is today's best trade setups with Verified Investing. >> [music] >> Welcome to today's best trade setups. My name is Benjamin Pool, head trader here at verifiedinvesting.com. So, the S&P 500 is kind of neutral today, slightly negative while the SOXX is dropping significantly as well as USO. So, let's jump right in the charts. We're going to take a look at what's going on with the SPY. So, here's the first chart that we're going to go over. Right now, again, we're slightly negative on the day on the SPY, consolidating slightly. So, based on previous price action, a little bit of price consolidation could shoot us up a little bit higher. If we go up and head up to this up-sloping trend line right here, a retest of this broken up-sloping trend line is $760.44. If we get a continued sell-off today, I will be looking at picking up the SPY at a previous gap in the charts at $748.17. Now, I mentioned the SOXX is having a decent drop today. Look at what happened. Price action caught support at $524.71, got a nice bid to the upside, finally closed above this pivot top right here at $618.84. Now, we're back below this high pivot point. So, this is looking a little bit more bearish. Now, when we jump on here and tell you that something's looking a little bit more bearish, this is a warning signal. When there's so many of us who jump on here and give you the same message, that isn't saying that, yes, we're guaranteeing the top is in. This is saying that prices are overextended and they're due for a pullback. We're going to go over LIT and show show exactly what we're talking about as far as the potential moves to the downside. SMCI at one point was the darling of the market and it looked like there was never going to be a top in it and then it pulled back. AVGO is another good example of how a stock can get super elevated and get a pullback. So, that's what we're talking about. We're not guaranteeing anything on technical analysis. We're just signaling to you that we're overextended and we're due for significant pullbacks. So, here's a another chart, USO. Look like there was going to be no stop in USO. Finally peaked up above 500 $153 and now we're pulling back into this gap in the charts at $116.04. MU, starting to take out this pivot top, but as you can see we've got this red bar candle with all of this price consolidation right in this area and some volatility with the relative strength index heading lower, this is starting to signal that the buyers are starting to wane. Does this guarantee that we're going to get a pullback? Absolutely not, but it is a warning signal saying that the markets are overextended, MU is overextended and now we can start seeing more pullbacks once the buyers step out of the way. Microsoft, another great example. Here's this nice pullback consolidating right on top of this support level right here at $393.11 all the way down to $384.35. If we continue this selling pressure, we're heading down to $366.82. That is your next buy level on Microsoft. Pivot low here, secondary hit, third hit, finally broke out. This would be another retrace to the scene of the crime breakout as well as a ton of support for Microsoft. But just like this stock, everybody thought $554 was just going to be a temporary top, but now all of a sudden, look at how far down on Microsoft we are, 30% and we were even lower than that on the chart of MSFT. SanDisk, although it hasn't made that same type of correction, this is just signaling that now the buyers are starting to step out of the way. Look at this huge run to the upside. We got as high as 2100 and $2167.41 in the pre-market, tagged that level during the market hours. Now we're getting a little bit of a sell-off. This is telling us with negative RSI divergence that there isn't quite as much buying pressure in SanDisk as there was. Nvidia, another opportunity for a potential long play. We're getting the sell-off. Had this nice support level right here. Pierced at 200 bucks. We're actually making a little bit of bullish consolidation on on Nvidia. So we could see a push all the way up to $218.66. That is your short level. And this is for a day trade, not a swing trade. However, look at the volatility. Now we're starting to see some negative pressure on the chart of Nvidia, even though we are putting a little bit of consolidation right underneath resistance. Once we fail the support at 208.19, then we could head down to this gap in the charts at $196.50. This is going to be the buy level for today, but it's also the line in the sand if you're a bull on Nvidia. It needs to stay above this level, consolidate uh continually underneath this resistance, and then we can start finally making a push to the upside at $218.66. SMCI. SMCI, like I mentioned, was the darling of the markets. It looked like this thing couldn't do any wrong, and then all of a sudden it peaked after it got not only um an additional uh influx of capital through uh additional shares on the markets, but it also had some additional negative news. Let's take a look at where chart uh the price action is trading on SMCI. $29.81 is currently where it's trading. $30.56 is that support level or used to be support, now it's starting to become resistance. Zoom out on the monthly timeframe, look at SMCI. It peaked out at about $123. Nobody thought that they were going to have a pullback. Had continual buying pressure in the stock of SMCI, and then eventually fell 85% 86% on the chart of Microsoft. Now, we were warning that the it this was oversold and we started warning when it was at $73 and then even higher, started to get some volatility, finally decided to peak. What we're waiting for on SMCI or SanDisk and MU is this continued selling pressure to the downside. Once we start making pivot tops, lows, lower highs, lower lows, and failing to take out pivot tops, then all of a sudden we're going to get these rollovers. So, that's what we're warning on SanDisk and MU and all these other plays that are continually being elevated to the upside. Eventually, the buying pressure will wane and the sellers will take control. Intel made another push yesterday. Here's his pivot top with volatility. Again, didn't guarantee that it was going to be a top, had a decent pullback from $132 all the way down was a 26% move to the downside. So, this is showing some additional weakness in the chart of Intel. So, now all of a sudden we're getting this nice sell-off today. A buy level, if you're a bull, is still right here at a previous gap in the charts. $116.97 is an aggressive level today. If does flush that level, if you're a bull on this, you could look to play this at about 107. Once this $100 whole round number gets taken out and confirms below or makes a the move below, all of a sudden the bottom is going to fall out of Intel. Again, it doesn't guarantee that it's going to top right here, but there are some warning signs that are showing up on the chart of Intel. LITE, another great example. So, it looked like LITE was going to continue this push to the upside. Finally got above almost $1,100 on LITE, and then you had a decent pullback. So, a 25% pullback got into some resistance, pulled back even further, and now we're below this up-sloping trend line on LITE. So, on a short play, based on this price action right now, if you're swing shorting this thing, $130.27 would be a retrace of this broken up-sloping trend line. For today, what I'm looking at is $854.05. Previous gap in the charts, secondary gap right here, confluence area at $854.05. If it drops a little bit further for today, $850.75 is that additional long level. Once it closes below that, you are going to have some additional support below the $800 level. Once that fails, though, LITE is coming all the way back down into 600 bucks. And from the $1,100 close to that area, you're looking at a 44% move to the downside. There will be a ton of people who have over-leveraged themselves in LITE, and as the price action of the stock continues to fall, they're going to start panicking and selling, and that's why it's going to drive it down to $601.12. For today, though, $854.05 is that level I'm looking at. AVGO, another example. Overextended to the upside, had this nice reversal candle, earnings happened. I thought it was going to get up and pierce this $500 level, and then get a drawdown. But, what happened was we had a 25% move to the downside. That's not a significant enough move to really get the institutions on board to drive this higher. What they're looking at is potential price consolidation right on this $370.33 cent level. Your next level support if it does break would be $354.53. Ton of price consolidation, so this is your area to go long after this drop on the back of earnings. Tesla is having another decent pull down drawdown today. So, if we do get a push to the upside again, I would be looking to short this for a day trade at $416.10. On the long play, previous gap in the charts at $390 would be the level that I'd be interested in playing this for a long. $391 bucks for a long play. Once this level gets taken out, 380's going to be your next support. Ton of price consolidation in this area, but for me, I would be waiting for a swing trade around 355 bucks. AMD is also starting to show some signs of weakness. Look at this, it got above this high pivot point right here, closed above, and now we're getting a decent sell-off today. So, if you're aggressive, your long level is $504.93. That is the level you enter for a day trade. And if it does close below that on a 15-minute closing basis, look to stop out. AMD is also showing signs of weakness with volatility in this stock and starting to get negative RSI divergence. So, what I look at a negative RSI divergence is you have to see what's happening with the price of the stock. If we start to get volatility, the price action heads higher, the RSI heads lower. That is more bearish than it is bullish. Now, all of a sudden, we got to see what price action does. Like I was mentioning, if you get that pivot top, a low, a lower high and a lower low and the RSI stead stays negative or starts heading down to the 50 and staying right at the 50 and starts to break that with price consolidation creating bare flags, all of a sudden the bottom's going to fall out of this thing and we're going to have a considerable sell-off on AMD. $400 is where I think that the next stopping point is going to be and that would be an entry price for a potential long play for a swing trade. Anyway, that's what I have for you guys. Again, we're not telling you that this is a guarantee that the that this is the top. What we're saying is be cautious. Once these things start to really roll over, then all of a sudden they're going to start crashing and that's what we're waiting for. We're just warning you that's about to happen. Could be another week, could be 2 weeks, could be a month and a half, but they're starting to show some signs of weakness in these stocks and that's when uh that's that's when if you're going long, just be a little bit more cautious. Okay? That's what I have for you guys. Thank you so much for joining me. Please make sure you're following, liking, subscribing, and ringing that bell so that way you can get notified when these go live when these go live. We'll see you guys next time in the charts. You guys have a great rest of your day. Take care. >> [music] >> Yeah.