A very choppy week has ended, bringing the anticipated vanishing bounce.
The Volatility Index ( $Cboe Volatility Index(VIX)$ ), $S&P 500(.SPX)$ , and $NASDAQ 100(NDX)$ have been studied with clear indicators, and their setups anticipated both the previous week’s decline and the recent choppy price action closing in the red.
This week’s bearish trigger came from the technology sector, driven this time by capital expenditure concerns for $Meta Platforms, Inc.(META)$ , which turned negative in free cash flow; the market simply needed a catalyst, and it arrived from the corporate front.
What is particularly interesting is that stock participation continues to improve. While the mega-cap semiconductor and tech giants in general are struggling, that weakness is not replicated across the broader market. Healthcare, energy, staples, financials, and discretionary sectors, those less influenced by tech, enjoyed a bullish week. Communication services ( $Communication Services Select Sector SPDR Fund(XLC)$ ) was impacted by META’s bearish move.
For this reason, I maintain a specific watchlist covering mega-caps across different sectors. Last week, this publication anticipated high-probability bearish setups for META, exceeding its 659 target (-7.1%); $Microsoft(MSFT)$ , hitting 515 (-2%); and $Amazon.com(AMZN)$ , targeting 244.5 (-2.2%), alongside bullish setups for $Costco(COST)$ , which reached 1,016 (+2.7%), and $Exxon Mobil(XOM)$ , hitting 181.8 (+1.6%).
The setup blueprint I present includes my personal picks and the specific roadmap for each security so subscribers can track their own preferences: $Eli Lilly(LLY)$ for example was bullish, and reached the 1,302 target (+3.6%), $Visa(V)$ was bullish, approaching the 417.4 extended target (+3.7%), and $Alphabet(GOOG)$ was bearish, it exceeded its 322 extended target (-4.2%).
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