Updates for Tuesday November 5, 2024

Click here for Signal Trades spreadsheet.

Updates 2:14 PM  ET - Tuesday

Vol crush and price recovery
Latest VIX VVIX VX UVXY charts tell us this is now a vol crush, which is just a jargon for the unwinding of hedging using volatility products.  We don't think VX is going to build a big base to surge over 21.  We don't think there is that level of fear just yet.  More likely, we'll see price recovery until the key resistance levels below are tested.

NQ is likely to retest support at 20008 - 20100, and rise up to reach resistance at 20789.

NVDA is likely to retest support at 136.65 - 137.5, and rise up to reach resistance at 144.5.

NVDL is likely to retest support at 71.87 - 72.6, and rise up to reach resistance at 80.85.

SOXL is likely to retest support at 30.2 - 30.8, and rise up to reach resistance at 80.85.

TNA is likely to retest support at 42.6 - 43, and rise up to reach resistance at 47.85.

Updates 3:00 AM  ET - Tuesday

VX next move will reveal real market mood
It is the night before the US presidential election, and all through the land, there is a great deal to be nervous about.  Interestingly enough, VX was forming a top Sunday night, and as we anticipated in our Monday projection, VX dropped substantially on Monday.

Now it is getting ready for the next key move.

• If VX rises up to retest the zone 20.15 - 21 and fails to break out above this, then volatility is likely topping out.  Conditions will be much more supportive of equity.
• If VX drops into the zone 18.7 - 19.25 and starts to form a base, then conditions will be much more bearish for equity.  VX may rise from this zone all the way up to 22.5.

NQ
Ahead of Monday, we wrote: “NQ is likely to retest initial support at 20008 quickly early Monday as VX chops around the top.  NQ will most likely find enough buyers at 20008.”

This is what NQ is doing, and it does appear that there is strong support at 20008.  If VX forms a supportive setup for equity, then NQ will most likely climb from 20008 back up to retest key resistance at 20545.

If NQ cannot build enough bull momentum here to break above 20545, it will sell off sharply and most likely won’t truly find bottom until support at 19636.

If NQ can break above 20545, it will climb fairly rapidly to previous high at 21216.

NVDA
NVDA is looking weak.  While NVDA may retest initial support at 132 again, it is unlikely to find enough momentum to rise above new resistance at 139.88.  Instead NVDA will most likely sell off some more until it reaches bottom support at 125.5.

NVDL
See NVDA path discussed above.
Initial support:         67.1
Key resistance:        75.1
Possible bottom:     61

SOXL
Initial support:        29.2
Key resistance:       31.83
Possible bottom:    25.5

TNA
Initial support:        41.45
Key resistance:       44
Possible bottom:    38.45

Our personal trade plan
We will exit NVDL on Tuesday and look to enter SOXS.  Click here for Signal Trades spreadsheet.
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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.​​