Updates for Wednesday July 17, 2024

Click here for Signal Trades spreadsheet.

Updates 12 PM ET - Wednesday
Sell order got filled for SOXS
We may have been too conservative in estimating today's sell-off, but pocketing partial profit is still a good thing.  For info on how this SOXS position was entered, click here.

​Updates 11:31 AM ET - Wednesday
Key support zones coming up
Things got bearish faster and deeper than we expected, but we did expect the selling to happen.

• VIX took off this morning and may reach 15 before it is done with this dip.
• UVXY may reach 23.75 resistance level.
• VVIX gapped up but may be forming a lower high top.  Unclear right now.
• NQ may bottom out in the zone 19900 - 20000
• SOXL may bottom out in the zone 54.75 - 55.5

This Level 2 dip is not technically done yet.  We need a clearer top on VIX VVIX UVXY charts.  Also in terms of timing, we may see choppy bottom starting to form for the remainder of this week.  NQ SOXL may not start to rise back up the channel until Monday.

Our sell order for SOXS position got filled.  If you are still holding SOXS, it may go as high as 21.75 - 22.

Updates 12:55 AM ET - Wednesday
Upcoming key events

VIX UVXY still suggesting Level 2 dip is in progress
VIX 30-min chart below shows a rising 200 EMA green line.  As well VIX 20 EMA blue line and 50 EMA red line have crossed above the 200 EMA green line.   This implies that the dip is still in progress.

Instead of looking at UVXY chart, sometimes it's more helpful to analyze the inverse SVIX chart.  Observe that SVIX has formed a top since July 12, and is about to drop out of the bottom of its purple channel. The last 2 times this happened, the Level 2 dip accelerated into a climax.   We may very well see that between now and early next week.

VVIX 30-minute chart pattern is currently unclear.  So we cannot draw a conclusive message from its chart right now.

NQ

• NQ is struggling to stay in the range 20506 - 20741.
• NQ may dip lower than 20506 to eventually retest 20335 before OpEx.
• As long as NQ can stay above 20335, it will begin to climb back up to eventually reach the high of 21480 by FOMC on July 31.

SOXL

• SOXL may end up basing in the range 61 - 65.75 between now and OpEx this Friday.
• Then SOXL may quickly dip early next week to retest 58.8.​
• As long as SOXL can stay above 58.8, it will begin to climb back up to eventually reach the high of 74.5 by FOMC on July 31.

We entered into half position of SOXS after CPI Thursday morning.  We plan to exit at the bottom of SOXL choppy range and wait for SOXL setup.

​Click here for Signal Trades spreadsheet.

​Disclaimer
The information presented here is our own personal opinion. Consider it as food for thought.  We are not offering financial advice. We are not promoting any financial products. We are not registered financial advisers or licensed brokers. We make no guarantee that anything will unfold according to our projections.  You are proceeding at your own risk if you follow our trades.