The stock market strength continues it refuses to quit, shaking off early weakness and closing right near all-time highs.
Key Takeaways:
- Buyers stepped in on every dip, a bullish signal.
- S&P 500 (SPY) and Nasdaq (QQQ) continue to grind higher.
- Semiconductor stocks and AI names remain strong leaders.
Let’s dive into the best trade setups for tomorrow.
Market Overview
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Bullish Action:
- The S&P 500 ($SPY) and Nasdaq ($QQQ) rebounded from morning weakness.
- Dips are getting bought up—a sign of strong momentum.
- 70% of QQQ stocks closed higher, confirming broad market strength.
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Semiconductors on Fire:
- Intel (INTC) surged after news of Silver Lake’s investment.
- Micron (MU) showed strong momentum—potential continuation play.
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Watch for a Market Breather:
- Many stocks are 5-7 days into their run.
- If we get a small pullback, it could reset the trend for higher moves.
Top Stocks to Watch Tomorrow
Semiconductor & AI Stocks
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Intel (INTC)
- Key Level: Gap fill towards $40+.
- Trade Plan: Look for a weak open to buy the dip.
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Micron (MU)
- Setup: Breaking out with strong volume.
- Strategy: Buy above today’s high or wait for a pullback to support.
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Palo Alto Networks (PANW)
- Reversed from a gap-down—now at all-time highs.
- Watch for continuation if market strength holds.
Momentum & Breakout Stocks
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Affirm (AFRM)
- Inside day setup—breakout level at $80.
- Strategy: Buy on a breakout or red-to-green move.
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DraftKings (DKNG)
- Earnings breakout, followed by a rest day.
- Setup: If it opens weak, look for a bounce play.
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Lemonade (LMND)
- Swing trade setup—starting to break out of a long base.
- Target: Watch for a push toward $25.
Short Setups & Fading Weakness
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Meta Platforms (META)
- First red day in weeks—gap-up tomorrow could fade.
- Strategy: Look for a short if it pushes into resistance early.
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Ionq
- Head-and-shoulders breakdown in progress.
- Trade Plan: Short on any bounces.
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RGTI
- This stock keeps failing after small pops.
- Plan: If it spikes early, look to fade it.
Pro Trading Tips for Tomorrow
- Stay Patient: Many stocks are 5-7 days into their run—avoid chasing. This stock market strength is here to stay it looks like be patient!
- Watch for Weak Opens: If stocks dip early, look for red-to-green setups.
- If the Market Gaps Up: Be cautious—some extended stocks could fade.
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