Stock Market Sell-Off: What’s Next After Another Brutal Drop?

Today’s Stock Market Sell-Off downright ugly, and the indices aren’t telling the full story. While the QQQ dropped just 4% in three days, many individual stocks are completely unraveling under the surface.

🚨 Earnings winners Getting dumped
🚨 High-flyers reversing hard
🚨 Small caps breaking key support

The question is: What happens next? Are we in for a bigger pullback, or will we see a snapback rally? Let’s break it all down.

What’s Happening in the Market?

QQQ down 4% in 3 days, but the pain underneath is worse.
SPY only down 0.5% today, but it felt like a full-blown sell-off.
Russell 2000 ($IWM) broke below its 200-day moving average—not a great sign.
NVIDIA earnings this week—will it save or sink the market?

Today’s action had a classic bear market feel:
📉 Gap up → Fake rally → Rug pull → Waterfall sell-off into the close.

That kind of trap action is brutal for traders—but it also sets up huge opportunities.

Best Trade Setups for Tomorrow

Bounce Plays (If We Get a Reversal!)

Palantir ($PLTR)
- Near 50-day moving average—a solid bounce zone.
- Stochastic RSI is oversold—looking for a short-term reversal.
- Trade Plan: Watch for a gap down near $85-$86, then look for buyers to step in.
Robinhood ($HOOD)
- Gave back all of its earnings breakout gains.
- 50-day moving average support at $14.50.
- Trade Idea: Looking for an undercut and reclaim setup.
OKLO 50SMA IS AT 33

🚨 Important Note: These are only valid if we see confirmation of buyers stepping in. If the market remains weak, expect lower prices before a true bounce.

Short Setups (If the Downtrend Continues!)

Google ($GOOGL)
- Bear flag breakdown below $179.
- If it gaps up and fails, look for a fade play.
Microsoft ($MSFT)
- Lost its trading range—looks weak below $400.
- Short pops back into resistance for the next leg lower.
AMD ($AMD)
- Clear bear flag near $107.
- Trade Plan: A break below $107 could send it down to $100 fast.
Tesla ($TSLA)
- Bear flag forming—trend is clearly down.
- Break below $330 = more pain ahead.

🚨 Pro Tip: If the market gaps up and immediately rolls over, short these names on failed bounces! This Stock Market Sell-Off could go for a bit.

Key Levels to Watch in $SPY and $QQQ

$SPY:
- Support: 500, then 490.
- Resistance: 510-515.
$QQQ:
- Support: 510, then 500.
- Resistance: 530.

💡 If we gap down and hold support, we may get a bounce play.
💡 If we gap up and fail, expect more downside.

How to Approach This Market

✅ Stay flexible. The market could bounce or continue selling off—be ready for both scenarios.
✅ Trade smaller size. Volatility is picking up, so protect your account.
✅ Wait for confirmation. If a bounce play doesn’t hold support, it’s not a real bounce!