Hey guys, Lawton here with Verified
Investing back with another ProCharts
video. This one, Market Movers. Hope you
guys are doing well and happy Friday.
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this. With that being said, let's hop
right into it and start with the QQQ.
Now, the Qs today and this week have
continued to kind of push up today just
being just about flat. Still a bit off
of their all-time highs, right? Still
unable to recapture. Down about 2 and
1/2%.
But,
potentially creating some bullish
formations.
The one I really want to focus on is
this
inverse head and shoulders pattern.
Taken like this, shoulder,
head, shoulder,
right? And that measured move would be a
move up.
Let's take a look.
Yeah, would be a move up basically to
800 bucks, about 10% higher. But, here's
the thing. It's really important to note
that
these bullish patterns at the highs of
the charts are less likely to play out.
But, it's interesting to see the Qs
unable to recapture any all-time highs
when the S&P, which we're about to talk
about, has had absolutely no problem
whatsoever
recapturing and pushing towards new
all-time highs. As we take a look here,
the S&P,
great, great move up. Basically from
last week Friday
up about 5 plus percent. Right? And at
the Q's, right? Still down. So, the S&P
made new all-time highs, but the
question now is, well, where does it go
next?
Well,
first of all, we can see that that
breakout was also a breakout of a
also an inverse head and shoulders,
right? Drawn a little separately than
um
the one on
Let me go ahead and adjust this.
And draw this.
A little different from the one on the
Q's, but still absolutely valid. And
let's just take a look and try and find
out what this
take profit zone would be. About 5%
move, right? So, similar pattern inverse
head and shoulders with the measured
move up here to 795.
Continuing in a push up.
Could it get to target? Potentially.
But, what I really wanted to pay
attention to
are a couple of beautiful upsloping
trend lines that we're starting to trade
in and around that the S&P
at least for now is beginning to
respect.
So, drawing trend lines are always, you
know, kind of iffy in regards to
all-time highs and price discovery.
But, it really helps when your pivot
points are very strong. And in this
case, the pivot points I'm using to draw
my trend lines are certainly very
strong. They're from previous all-time
highs. All-time high here in June,
all-time high here
in the beginning of August, all-time
high here yesterday.
And so far, so good. It's respecting it.
But, this is a key level that I'm
watching that if maybe it could stay
below it, maybe it favors a move lower,
right? Particularly if you start getting
some
kind of up sloping trend line here
creating kind of a wedge or a parallel,
but we have to give it some more time to
develop, right? Ultimately, that's
what's going to decide where it ends up
going in the rest of the market ends up
going, right?
>> [clears throat]
>> Additionally, let's go take a look at
the SMH. SMH was trading in this
beautiful head, shoulder, head pattern.
Broke the pattern, almost hit that
target down at 500, and then what did it
do? It came back up.
Beautiful recovery here and retrace.
Retrace all the way back up here
to about 590 to 600, back to that
neckline, right? Now, I believe this
move is done for the SMH, this head and
shoulders pattern, but I still believe
this neckline is going to be strong
resistance. Right, and so far we haven't
totally cleared this level of resistance
here on the SMH.
Additionally, should the SMH continue
higher, there'll be a couple key levels
if I can kind of draw, looks like it's
not letting me
draw any lines right now.
Let's see. Okay, there we go.
There's going to be a gap fill here of
resistance around $6.11,
and an additional one here around 655,
656. And then I'm looking at double top
all-time highs at 671.
You can see that the S&P and the SMH
have totally decoupled
uh where the
SMH is still down over
about 12, 13% from all-time highs, the
S&P continues to make all-time highs,
which just goes to show that the
semiconductors, which previously were
kind of leading the charge and and
taking ownership of basically the entire
market and the directions it was going
in
isn't having no such luck now.
Moving on, looking at AVGO, AVGO's
falling now today off of a potential a
scare in terms of a uh a malware or
virus. Right, if you take a look at the
latest news, "Broadcom shares plunge on
major VM security threat." So, that's
[snorts]
interesting, right? We had a huge fall
about 6 and 1/2% today.
And look where it bounced, guys. Right
there, beautifully on this beautiful
up-sloping trend line. If we can break
and confirm, we'll have a couple key
levels. Got fill, pivot low.
And then bombs away. Right, this thing
you could see Broadcom all the way down
to 350, 334
uh if these levels were to break. But,
we got to see.
But, so far this trend line has held
strong
after all of this selling. So, we'll see
what ends up happening.
Now, on SanDisk, SanDisk great week, up
7% today. Uh
and taking a look at it, it doesn't seem
to be stopping.
We had a very clean break of this
down-sloping trend line. And you can see
that kind of explosive move up basically
from Tuesday. Stock is up about 30%,
guys. 30%, unbelievable.
Additionally, here on SanDisk,
there's a couple previous head and
shoulder trend lines. There's one here,
one here. Um but we also crushed that
level of resistance there, pushing
higher. Question is, where is it going
to find resistance next? For me,
on SanDisk, I'm looking around 1,900 to