Market Rebounds: What Drove Today's Recovery and What's Next

Summary

Today's stock market saw a sharp selling pressure early on, followed by a significant recovery that pushed prices back into previous ranges, technically saving the markets from further immediate downside. The S&P 500 experienced a large bounce, closing back within Friday's candle, indicating strong "buy the dipper" sentiment. However, a daily close below Friday's low at 4735.53 would signal more downside. The NASDAQ Composite also retested its parallel channel but closed back within Friday's sell-off candle, with a close below 25,648.47 signaling increased downside risk. The SMH, a leading indicator for AI, closed back within Friday's candle, not confirming a breakdown, but a close below 554.66 is needed for confirmation. The selling pressure was driven by recent hot jobs reports, rising 10-year yields, and anticipated CPI data tomorrow, echoing reasons for the summer 2023 correction. Factors like tariffs, no rate cuts, and potential rate hikes add to investor concern. For the market to recover, yields and oil prices need to decrease, and Middle East conflicts need to de-escalate. US Oil is holding support within its pennant pattern. Natural Gas remains sideways, consolidating above support. Bitcoin is struggling to reconfirm within its parallel channel, but the RSI suggests a potential near-term bounce. Apple, however, saw a continued sell-off after WWDC, erasing gains since May 8th, with support at $281.55. Marvel saw a rapid ascent and is currently in "spec mode," with support at $241.67. Qualcomm experienced a sharp bounce from its 50% area at $193. DraftKings surged over 11% to close above resistance at $27.14, driven by a 24% jump in prediction market betting.