Trading The Close | July 9, 2026

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>> Hello everybody. Welcome to Trading the
Close. My name is Drew Dossey. And guys,
the markets today flipped on the green
switch, mainly because we had two major
indicators pulling the prices down on
their charts, and that was the 10-year
yield in the US oil, both of which came
down, allowed some breathing room for
investors to push the markets back up.
SanDisk at one time pushing up more than
10%. It did pull back towards the end of
the day, but we've got a few different
charts to go through in today's show,
plus two viewer requests. Thank you
guys, each and every one of you posting
comments on the show. It really helps
make this a full encompassing show. That
way we go over big key names and movers
in the markets, plus key charts that you
guys have interest in, too. So, first
off, the S&P 500, guys. Look at the
development that occurred today. We got
a daily close above this key declining
trend line, one that we've been
following mainly for this wedge pattern
for the past couple weeks. So, this is a
big deal, guys. Look at the 10-minute
chart. Let me flip it to see a little
bit more accurate price action for
today. And you could see here today, we
did go up green and nicely, but then we
had some decent selling pressure at
10:00 and 10:10, but that was quickly uh
recovered on, cuz you could see the
markets just floated up for the
remainder and pushed up through the end
of the afternoon. Once we broke above
that declining trend line, we broke
above, retested it, and then bounced and
went higher. A great breakout retrace
play example on the 10-minute time
frame. One of the greatest examples,
too, about technical analysis, once you
do learn the patterns, you can see them
on all these different time frames play
out exactly how the technical analysis
describes. Much like our breakout
retrace and bounce play, 10-minute chart
proved it happened today this afternoon.
My nice move up and push towards the end
of the day closing nicely above that
declining trendline. So, for the bulls
on the S&P 500, you want to see
tomorrow's price action close above
today's high candle. That will flip this
declining trendline from resistance into
support tomorrow at $750.37.
If we're capable of doing that, this
will then release the spiders for more
upside with the next major resistance
coming on this inclining trendline right
around $767
depending upon when price gets there as
this is a dynamic trendline, the value
will increase the longer that price
takes to get there. Next up, the Qs.
Now, the Qs also great day, 1.66%.
Didn't really have as much volatility as
what we saw on the SMH, but we did have
a very nice close pushing up above the
gap fill from July 6th. The next major
resistance on the Qs comes on this
declining trendline, and I'll extend it
out so you can see in the next couple
days. That's at $735.51.
So, we're not entirely in breakout mode
on the Qs yet, much like what could be
happening on the spiders. Uh, already
spiders somewhat leading this surge for
potential breakout in the near term.
Again, got to follow up tomorrow and see
if there's any sort of confirming move.
Into the SMH, which has already
confirmed a breakdown right here and
retested this inclining trendline from
which it broke, it had a fantastic day
today though, guys. Look at the semis up
over 2.4%,
but it did actually have some decent
selling, too. You could see we're
closing at the lows of the candle, but
but is the index that is up the most, so
there likely was just profit taking
going into the close. Plus though, guys,
I need to remind you, we're still in a
bearish situation with a weekly topping
tail backed up three weeks later with an
engulfing reversal weekly candle, both
very negative signs to see at the top of
a chart. So, any other technical
analysis investors are seeing this and
giving any opportunity for bounces to
start trimming or getting out of their
positions. Even with the spiders in
potential breakout mode, right now the
semis are not leading the way with that,
guys. They're leading the way on the
daily gains, but they're not leading the
way with the potential breakout as we
would have to get all the way up here at
$640 and 86 cents before we start
testing that declining trend line on the
SMH. More room to go there, near-term
support, yesterday's gap fill down here
at $593 and 42 cents. Next up, the US
10-year yield, and as I've said, guys,
this was one of the major reasons we did
have some upward movement in the
markets. We didn't fall tremendously on
the 10-year, but notice how we got
comfortably beneath this declining trend
line on the charts. Now, we're closing
up a little bit higher from the lows.
We'll see where we end up by the time
tomorrow, but still a downward move
after these previous 2 days up did take
pressure off the markets and in in turn
looking at the dollar, dollar also did
drop today. That helped the market stay
afloat, but notice what's going on on
the dollar. We've got an increasing
parallel channel
that has had a price breakout above,
retested, which should have given it a
great bounce up to this next resistance
at 100.97.
In turn though, it's created a bear
flag. Look how the support is working on
top of this parallel. This is what
happens when you have a breakout and a
confirming move in price retest,
however, it doesn't bounce what you're
anticipating. Notice the support that is
here. That's how powerful this
confirming move is. If we only had one
or two days up here remaining within the
candle, we likely could just plunge
right back down within the parallel.
Since we got an extension, came back
down, got a nice bounce, and then since
our chopping sideways. So, this could be
the sign if you were a bull, we could be
on the edge of a potential re-entry into
the parallel on the uh US dollar chart.
Next up into gold with the 10-year yield
falling and the dollar falling, gold had
a push up. Same thing with silver. Gold
up one over 1%, but it's not above this
lower barrier of an inclining parallel
channel. That's the key level for bulls
if you want to start seeing more
positive momentum with gold. That level
tomorrow is at $4,155.
Near-term support 3886
right there on the bottom of your chart.
Uh similar scenario here with silver.
Great day, didn't clear this near-term
declining trend line. That's the line in
the sand we've now hit once, twice,
three times. The next attempt is
actually a 50/50 shot of breaking
through. So, you've got a bear flag here
on silver right on top of support on the
50% area of this parallel channel. That
likely implies a breakdown. But as I've
stated, we got a 50/50 shot if we start
going above this declining trend line
tomorrow. $60.42.
I'm still waiting sub $55 uh a two
around the $50 level to pick up physical
silver. If it misses me, it misses me.
I've already got other physical silver,
so that will be just fine.
Uh next up into US oil as I've said,
declined very nicely, almost 4% today,
down 3.96%
getting rejected at yesterday's
resistance level at $75.56.
We'll see what happens tomorrow and into
next week. If we just start chopping
right here underneath this resistance
level with maybe skirmishes arising or
not over in the Middle East, that could
give us an insight as to whether this is
just near-term bullish consolidation for
a break up to the resistance level. Now,
just one candle, too little to
determine. We'll see where price action
takes us tomorrow. Near-term support on
this declining trend line at $69.36.
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all of your money. All right, guys, back
into the charts, back into nat gas. This
is a big story, guys. So, we did have
news break. There's a surplus in storage
for nat gas today. So, what happens when
there's a surplus of any sort of
product? Well, the price comes down.
Look at the bullish consolidation it has
broken on the daily time frame. Now,
with price coming down underneath these
low pivots, underneath the flagpole that
started. We were talking about how this
was developing bullish consolidation
right beneath the resistance, actually
two resistance trend lines, looking like
it was gearing up for a breakout. Guys,
this is the widowmaker of all sorts of
charts. Nat gas can whip you. So, go
light when you are investing with nat
gas. Now, I don't think the story's over
for nat gas. Guys, it's the middle of
summer, after all. Talk about surplus.
We're not going to be using so as much
nat gas this summer that we will likely
be using during the winter months. So,
that kind of makes sense. Maybe a few
weeks too early to start piling the boat
on nat gas, but let's get in the chart
again and see where price action could
go. So, first level beyond this level of
support that just was smashed today is
going to be down here $2.90.
Now, I flip into the weekly time frame,
okay?
Notice how we have a left shoulder, a
head, and potentially a right shoulder
that's starting to develop. I prefer if
these were symmetrical in shape. Doesn't
look like that's going to happen. So,
I've already distinguished this first
level of support right here at 290. The
next level to be paying attention to
would be the lows that occurred back
here earlier this year in April at
$2.73.
If we have price action get underneath
that, any sort of positive bullish
patterns right here beneath this
inclining parallel will have been
negated, all right? So, a big move on
Nat Gas today. See if the bulls can't
save it right here $2.90. Give it
another returning tack up to this
declining trend line, in which case
inverse head and shoulders could set up
for a later surge upwards on the charts
of Nat Gas.
Next up into Bitcoin. Not too much new
to report. Did have a decent day up up
1.59%,
but mainly still remaining under this
parallel channel. Now, to gain re-entry
into that tomorrow is $63,928.
If it doesn't do that, it's still
trading underneath this parallel, likely
to move down to $53,000 as the next
support. Into SanDisk, guys. Look at
this rocket ship today. So, price closed
yesterday around 1725, got as high as
1950
today, guys. 13% surge. What did I say
about this the other day? Breakdown,
retrace, rejection. That should
be the case point for SanDisk in the
near future. But, guys, these stocks, as
we already know, has been the one of the
biggest runners in the S&P 500 this
year. We started the year all the way
back down here under $300 around 265 and
have since been over $2,000. Tons of
investors tied up in this and now has
since broken trend and is starting to
retrace. If price gets rejected here,
our TA is doing its its job. It should
be rejected here at the $2,000 mark if
price can get up there tomorrow.
However, if it does break to get back
inside, goodness gracious, that just
shows how incredibly strong the demand
is for this stock. So, I'll be watching
extremely closely tomorrow and the
coming days next week. Do we get above
and back into this parallel channel?
Otherwise, the declining trend line
could get hit next and that's roughly at
just over 2,000 2027. But, very
interesting scenario on SanDisk. Next
up, Light LITE, another big winner on
the day. This one up over 11% at the
close, but at one point, this was up
over 13% getting very very close to this
809.21 resistance level. That tomorrow
will be the resistance spot, but look at
LITE. It has a lot of room to run to get
back up here to $1,086.
And if it does start becoming a little
bit more bullish, the next resistance I
see beyond this 809 is the 50% area of
the parallel channel at $930.38.
If that does come up there and act as
resistance, and I know this is a few
steps ahead, we would then have a left
shoulder, a head, and then a right
shoulder for a big potential decline on
LITE. That's something we've got to be
monitoring not only on that chart, same
thing on SNDK. Left shoulder, head,
could form a right shoulder in this
pocket of resistance that you see right
here. So, keep that on the radar for the
semis. After all, they've already shown
that tech has broken current trend.
Doesn't mean that it's going to go back
up and become bullish again, but we've
just got to monitor the patterns that
we're seeing on the charts. Another one,
potential left shoulder, head, and not a
right shoulder forms yet, but Onto up
8.77%
getting rejected directly at the 50%
area of this parallel channel. Beautiful
rejection and guys, this is what
happened when price moves vertically
into a resistance level. It gets
rejected a very large percentage of the
gain. Same thing on the downside. Big
down move usually receives big bounces.
This is when you want This is when you
want to find levels to get into stocks.
When they're volatile, you can make a
boatload of money in one day if you know
how to spot these levels. And right here
on this chart, it was just clean as day
right here in the middle of the chart,
the 50% area put on the resistance. So,
where is the next area of resistance?
Still right here, guys. We're far enough
away. $331 if we can breach that, 345
is the next resistance to the upside. To
the downside support on the bottom of
this parallel channel right around
$281.97.
Next up into Costco. And guys, I wanted
to go over
um a couple things with this chart.
Costco had a decent decline today,
unlike these other winners. Down 4.21%
and doing so, notice it did a couple
things. It dropped underneath this trend
this inclining trend line, dropped
underneath the 50% area of the parallel,
and then also closed underneath this
longer-term trend line. So, let me flip
to the weekly and we'll get into some
educational trend line analysis for you.
There's a lot of different levels to
play on Costco and we're already gearing
up for more downside. You may ask,
"Well, well, why?" Well, I've got a
weekly topping tail here on the chart.
Now, we're putting in potentially a
weekly close under the 50% area of this
parallel. Plus, we're closing for at
least now underneath this inclining
trend line. Now, for Costco to have a
glimmer of hope at the end of the week,
it needs to get back above range. That
way
it can try to attack that 50% area of
the parallel again. Otherwise, we're
looking at up another potential head and
shoulders pattern. Now, this one doesn't
really have a good left shoulder. You
could say you can almost argue it was
right here, but the head's got to be the
pinnacle point. So, that leads us over
here, right? So, this could be a
collective shoulder and a head with this
being the topping tail. We'll see how
this plays out if we have any sort of
bounces and where would a bounce come
from, guys?
Get your trend line tool, find a pivot.
I see a clean pivot right here. Draw the
next trend line. Oh, that could be a
spot where price could bounce right here
at 891 and then potentially come back up
and tag the inclining resistance trend
line, where could be another spot. We
can draw this out almost infinitely,
guys, but then you start to see how
price action behaves on charts. Price
doesn't just go straight down on the
chart. It generally likes to hit a
level, take a bounce, break through the
level, have another bounce, break
through that level again, and then we
start coming into what I consider to be
a sweet spot to for a buying opportunity
on the charts. You can see here very
high pivot and a low pivot. Whenever I
have those on the charts, I pay very
close attention cuz this is a breakout
scenario, retrace bounce play hidden
right in the middle of the charts.
What's that value? Right under $800 and
that's where I find a convergence of a
declining trend line and an inclining
bottom of this parallel channel. One
that I would be interested in picking up
some Costco right over here. And you got
to be thinking if we're having higher
rates for longer, I know that wasn't the
case in the 10-year now, but more folks
are going to be attracted to buying in
bulk and trying to save money. So,
Costco could see another surge up on the
charts if we get some selling just a
little bit further down here into that
$800 range.
Uh lastly, I got two viewer requests.
This one from uh a member of our live
day trading room, JP. Thank you so much
for requesting this. And the next one we
have for Reshma De Ramos at ZTS. So,
let's take a look at a couple of these
charts. Thank you guys again for your
feedback. Really appreciate you guys
watching this show. So, first up,
Microsoft on the weekly time frame,
guys. Left shoulder, head, right
shoulder. You can see Microsoft did a a
very valiant job saving itself with this
massive down candle here the week of
June 22nd. Big almost you would call it
a bottoming candle. As you see, but
price action didn't uh get beneath this
candle here on April 7th, so it doesn't
technically fit one, but sure is acting
like one over the last 2 weeks. Price
has moved up pretty nicely. Key
resistance for Microsoft is regaining
this inclining parallel channel. You'll
see that over the next few weeks right
around $417.59.
Once and if we get back in here, then we
can start talking about negating this
head and shoulders pattern. Particularly
to get above the head, but if we start
getting above this pivot shoulder, that
would bode very well for Microsoft. And
that level is at $465.88.
A lot of levels, but they're a pretty
good distance away on Microsoft. Now,
near-term support right here on the
neckline, but if this gives, guys, the
next support is 344.79.
I know this may seem awkward, but if
this head and shoulders pattern plays
out, we have a target and measured move
down here at $157.
That price last was seen on Microsoft
all the way over here,
uh the post-COVID rally, guys, back in
March of 2020. If that happens, I know
I'm scooping up some Microsoft down
here. Even though people will say they
don't want it, but I'm buying it down
here. But, man, that's I got to at least
show what's the potential on the charts.
I don't think that's going to happen,
but it's it's a possibility with the
potential neckline break right here at
361 on Microsoft. Uh lastly, uh company
ZTS, Zoetis. Now, this company does
uh pharmaceuticals as well as
biotechnologies and I generally stay
away from stocks like these because
stocks put in so much R&D
capital into individual products. If
their portfolio is not diverse and not
really big, they could dump a lot of
money into one product and then if that
product fails somewhere down the R&D
line, man, you can see big drops in
pharmaceutical companies 30, 40% in a
day. So, I tend to just generally stay
away from healthcare companies
altogether. Even though some have great
diverse portfolios, that's just kind of
been a rule of thumb for me because they
can have really big swings. I'll rather
just play some tech stocks. We got
thousands of stocks to play, but
regardless,
you wanted some analysis on this chart.
I'll give it to you. Well, a couple of
these big drops are in display right
here. Look at these big drop, that big
drop. So, it can clearly happen on these
healthcare plays. Now, we find ourselves
on ZTS in a declining parallel channel.
The next support down here at $62.32.
Now, we're currently in the support. You
can go back here on the chart. I've
explained I love these areas where price
goes up, breaks up above, price comes
back down, retests this breakout spot.
So, we're currently there at $78.49.
Matter of fact, we're a little beneath
it. So, price is doing its best to try
to hold on. If we lose this shelf, the
next spot as I've said 62 32 with the
upward resistance, this 50% area the
parallel. So, we've got a lot of upside
potential up near and above the $100
range, but it's just got to get its mojo
going, get some good news so we can
start pushing back up on the chart.
Near-term RSI has pushed up to 40. So,
we can start going down on the chart.
Just beware of some of these healthcare
companies or biopharma companies. I
generally have to do more research
fundamentally into these stocks
than I do on other tech plays just so I
have a better finger on the pulse as to
how many products they have, how many
are successful, how much money they're
putting into their R&D, and all those
questions there's just for me added time
to
look at a chart and invest. And so,
like I said, different for every folks,
right? So, thank you guys so much for
watching and tuning in today on Trading
the Close. Uh don't forget to like and
subscribe. Send this out to your friends
and family so they too can learn
technical analysis on the charts. Guys,
we'll be back here on Monday next week.
We got inflation data, too, so we should
have some volatility in the markets.
Aside from that, I hope you guys have a
fantastic weekend. We'll see you on the
charts. Take care, folks.