| 2Q Earnings Season Starts Tuesday Technical Outlook and Market Thoughts Major Market Levels Nasdaq Support To Hold: 25,250 Price To Clear: 26,250 All-Time High Level: 26,750 (27,190 on 6/1) Bearish Breakdown Level: 24,500 The Nasdaq was up 68 points for the week and is up 11% for the year. Key resistance at 26,250 was cleared and held on Friday. Continued closes above this level gets 26,750-27,000 in the picture with the all-time high from June 1st at 27,190. The index recovered its 50-day and 20-day moving averages on Thursday and held them on Friday. More importantly, the index broke out of a mini downtrend channel.Fresh support is at 26,000-25,750. Holding 25,250 keeps the current trading range from June 5th up to 26,750 intact with this time period now at 24 sessions. Multiple closes below 25,250 would increase the risk of a decline toward 24,500, which would represent exactly a 10% pullback from the all-time high. The June 9th low at 24,980 and the June 26th bottom at 25,014 represented -8% and -7% pullbacks, respectively.  S&P 500 Support To Hold: 7,400 Price To Clear: 7,625 (blue-sky territory) All-Time High Level: 7,600 (7,620 on 6/2) Bearish Breakdown Level: 7,225 The S&P rose 1.3% for the week and has gained 10% YTD. Key resistance at 7,500 was cleared Thursday and Friday. Ongoing closes above this level keeps 7,600-7,650 and fresh record highs in focus. Our May 15th targets are at 7,600-7,750.Key support is at 7,500-7,475 and the 20-day moving average. Close below 7,425-7,400 and the 50-day and would be a slightly bearish signal with risk back down to 7,225. A breakdown below 7,225 and the June 9th low at 7,237 could signal that a near-term peak has formed with risk down to 7,150-7,100. The latter would represent an -8% shellacking with 6,800 equaling an -11% selloff.  Russell 2000 Support To Hold: 2,925 Price To Clear: 3,000 All-Time High Level: 3,050 (3,046 on 7/1) Bearish Breakdown Level: 2,875 The Russell was down 0.7% for the week and is up 20% for 2026. The index hit a fresh all-time high of 3,046 on July 1st. Our June 12th upside targets at 3,150-3,200 remain in play if 3,000 is recovered this week. The bulls were unable to hold 3,000 into Tuesday’s close but held the 20-day MA into Friday’s close that is currently at 2,970.Holding 2,925 keeps the broader uptrend intact for the index although its was stretched on Wednesday’s drop out of it. We said a clean break below 2,925 and the 50-day moving average (now at 2,900) would likely get early June support at 2,800 back in focus. We have been saying since mid-June, the 2,925 level needs to hold into earnings season and late July to keep the overall market pushing higher highs.  Dow Jones Industrial Average Support To Hold: 52,000Price To Clear: 53,000 All-Time High Level: 53,294 (on 7/7) Bearish Breakdown Level: 50,500-50,000 The Dow dipped 0.7% for the week but is still up nearly 10% for the year. The Dow broke out to higher highs midweek and remains within its adjusted uptrend channel with Tuesday’s record peak at 53,294. Our April 17th near-term targets at 52,000–53,000 were recently raised to 55,000.A pullback below 52,000 and out of the current uptrend channel would bring additional support levels into play in roughly 500-point intervals. A sustained move below 50,500-50,000 would signal that a near-term top may have formed.  S&P 500 Volatility Index (VIX) Initial Warning Level (Slightly Bearish): Multiple closes above 18.50-20 Bearish Market Signal: Multiple closes above 22-24 Lower Volatility Targets (Ongoing Bullishness): 15 (maybe 13.50-12.75) We said entering last week that the VIX continues to support a relatively bullish market environment. Specifically, we were looking for early June and key support at 15 to come into play and that is where we are at heading into earnings season. A clearer downtown channel was stretched to the upside on Wednesday, but held, with lower lows afterwards. We have been saying, multiple closes below 15 puts pressure on the bears down to 13.50 with last Christmas Eve’s lower at 13.38.The 50-day moving average continues to show signs of rolling over and supports the bullish market thesis. Closes above 22-24 on the VIX would be a bearish development for the market.  Earnings and Economic News Before the open: LogProstyle (LGPS) After the close: AeroGrow (AERO) Economic News None CommentaryOur prediction for a rangebound market into earnings season played out in spades and we also saw higher highs coming into focus ahead of the 2Q earnings season. We continue to highlight downside layers of support on the major indexes because they can happen quickly.We often say the bulls like to take the stairs to higher highs while the bears like to take the elevator to lower lows.The monthly July options expire this Friday. We said we would be in exceptional shape for possible directional Alerts with August and September call (and possibly put) options now on deck.Futures are showing a little slippage on Monday’s open. Dow futures are down 195 points while the Nasdaq futures are sinking 345 as we head to press. The S&P futures are lower by 36 points and the Russell futures are down 19. |
Momentum Options Alerts Update for 7/13/2026 Closed Momentum Options Trades for 2026: 34-11 (76%, 8 triple-digit winners); 2025: 55-20 (73%, 17 triple-digit winners); 2024: 77-17 (82%, 38 triple-digit winners); 2023: 34-11 (76%, 8 triple-digit winners). Overall: 200-59 (77% win rate) 70 triple-digit winners. Please remember, all “Exit Targets” and “Stop Targets” are targets. You should not have any “Stops” entered to close any alerts or “Limit Orders” in your brokerage account unless we list one. We will send out an “Alert” or “New Alert” if we want you to close a position or if a new position comes out. Otherwise, follow instructions at all times in the updates on Monday’s and Thursday’s along with Text Alerts and videos throughout the week. Text Alerts (Telegram):Velocity Options: https://t.me/+uzxYHX8YEh85MzYx Special Notice: We only have a few open Alerts so we have room to add more. However, we want to confirm a possible breakout to all-time highs this month on the S&P and Nasdaq. There is a possible double-top forming in Tech. We can use bearish put options when, not if, the VIX clears and holds 20 at some point. DraftKings (DKNG, $26.48, up $0.19) Option: DKNG August 30 callsExpiration Date: August 21st, 2026Entry Option Price: $0.95 (7/10/2026)Current Option Price: $0.95Exit Target: $1.90Return: 0%Stop Target: None Action: Multiple closes above $27.25 has gap up potential to $29-$30. Above $30 there is upside towards $34. Key support is at $25.25. Closes below $25 could force an early exit this is a higher priced Alert. Earnings are due out on July 31st and we will have a more in-depth look at the numbers within the next week or so. |
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Lyft (LYFT, $15.61, down $0.13) Option: LYFT August 18 callsExpiration Date: August 21st, 2026Entry Option Price: $0.63 (7/6/2026)Current Option Price: $0.65Exit Target: $1.30Return: 3%Stop Target: None Action: Key resistance at $16 held by a 12-pack on Tuesday’s trip to $15.88. Shares held the top of the trading range at $15 into yesterday’s close. |
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Snap (SNAP, $4.68, down $0.02) Option: SNAP September 7 callsExpiration Date: September 18th, 2026Entry Option Price: $0.55 (6/1/2026)Current Option Price: $0.15Exit Target: $1.10Return: -73%Stop Target: None Action: Friday’s peak reached $4.87 with a key resistance at $4.75 getting topped but holding. There is gap up potential up to $5-$5.50 on ongoing closes above $4.75. Key support is at $4.25. The September options have 66 days before expiration so we are going to let this one ride over the summer. We don’t have a Stop Limit in place and there is still risk to $3.75. Since 2023, we are 11-0 doing covered calls on SNAP and 8-2 doing directional Alerts, calls and puts. The company announced it will selling some expensive AI glasses to the tune of $2,195. |
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