Bounce or Bull Trap? $SPX, $NVDA, $META, and $AAPL Face a Critical Technical Test
Markets delivered a technically meaningful bounce, but the real test now begins.
The $SPX rebounded sharply after breaching its lower Bollinger Band and triggering oversold signals, yet the 20-day moving average stands as the line between a sustainable rally and a classic dead-cat bounce.
Similar setups are unfolding across mega-cap tech. $NVDA shows a bullish stochastic crossover, $META has fully filled its post-earnings gap, and $AAPL is flashing a candle worth close attention after last week’s correctly anticipated rally.
1. $S&P 500(.SPX)$
The lower Bollinger band breached and the oversold oscillator triggered a major bounce.
The daily candle suggests continuation. The 20DMA will define if this is a sustainable rally or a dead cat bounce.
2. $NVIDIA(NVDA)$
Stochastic Crossovers like the latest one are usually followed by bullish price action, the candle also suggests continuation.
However, the 20DMA hurdle must be recovered as soon as possible to confirm this was not a bull trap like the one of December highlighted.
3. $Meta Platforms, Inc.(META)$
The post earnings gap has been filled, and the latest candle has bullish potential, very similar to the one from last November before the stock jumped over 10%. This coming week will be decisive for tech.
4. $Apple(AAPL)$
After rallying as predicted last week🎯, $AAPL printed a candle on Friday that is worth watching.
Previous shooting stars have preceded pullbacks, and the daily RSI is overbought. The latest weekly compass is out! get the complete analysis with specific $ levels to watch.
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