Updates for Wednesday August 28, 2024

Click here for Signal Trades spreadsheet.

Updates 2:00 AM ET - Wednesday
Upcoming key events

​Message from volatility:  bullish divergence
VIX futures (VX) 200-hour EMA green line has been trending down since 8/9.  This shows the bulls are fully in charge. 

Since last Thursday 8/22, VX has made 4 separate attempts to rise above its 200 EMA green line.  It failed every time.  VX failure to rise creates a very supportive environment for equity.

However, NQ SOXL NVDL TNA don't always move correspondingly to VX moves, tick by tick.  So they may still have one more sharp dip like on Tuesday before they are ready to respond to this bullish condition provided by volatility.  This gives us an opportunity to buy the dip.

NQ

• Yesterday ahead of open, we wrote that NQ may try to dip to 19453 one more time. During the morning NQ dipped very close, down to 19442.
• For Wednesday, possibly before or right after NVDA announcement, NQ may dip into the support zone 19441 - 19538.   
  
• As long as volatility continue its support, this is a buyable dip.
• NQ is likely to resume climbing after that, and most likely will retest R1 at 20025 by PCE this Friday.
• NQ may retest R2 at 20550 by 9/6 jobs report.
• NQ may retest R3 at 20984 by 9/18 VIXEx.

SOXL

• Yesterday ahead of open, we wrote that SOXL may try to dip to 35.93 one more time. During the morning SOXL dipped very close, down to 35.52.
• For Wednesday, possibly before or right after NVDA announcement, SOXL may dip into the support zone  35.52 - 36.55.​
  
• As long as volatility continue its support, this is a buyable dip.
• SOXL is likely to resume climbing after that, and most likely will retest R1 at 42.87 by PCE this Friday.
• SOXL may retest R2 at 47.7 by 9/6 jobs report.
• SOXL may retest R3 at 51.9 by 9/18 VIXEx.

NVDL​

• For Wednesday, possibly before or right after NVDA announcement, NVDL may dip into the support zone  63.42 - 65.27.​
• As long as volatility continue its support, this is a buyable dip.
• NVDL is likely to resume climbing after that, and most likely will retest R1 at 71.3 by PCE this Friday.
• NVDL may retest R2 at 77.15 by 9/6 jobs report.
• NVDL may retest R3 at 81.85 by 9/18 VIXEx.

TNA

• For Wednesday, TNA may dip into the support zone  42.25 - 42.89.
• TNA is likely to resume climbing after that, and most likely will retest R1 at 45.86 by PCE this Friday.
• TNA may retest R2 at 49.33 by 9/6 jobs report.

​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.