MomentumOptions.com Pre-Market Update for 6/26/2025
Nasdaq Clears 20,000
* All of the major indexes broke above key resistance levels on Tuesday following a cease fire deal between Israel and Iran. Oil stabilized, and for now, tension in the Middle East has calmed down.
* Last week’s consolidation period was a healthy sign as golden crosses were in the midst of forming on the Nasdaq and the S&P 500. These bullish patterns continue to play out on both indexes and is confirming the near-term run to higher highs.
* New and shaky support levels that we are now watching: Nasdaq 19,750; S&P 6,050; Russell 2,100; and Dow at 42,750. A drop back below these levels would would indicate a possible false breakout.
The stock market broke above key levels of resistance on Tuesday following last week’s trading range. Wednesday’s continuation to higher highs firmly gets fresh all-time peaks in focus as positive geopolitical developments have lifted sentiment.
The Nasdaq closed at 19,973 (+0.3%) after tagging a high of 20,052. Resistance at 20,000 was topped but held. Support is at 19,750.
The S&P 500 traded up to 6,108 before settling at 6,092 (-0.0%). Key resistance at 6,100 was cleared but held. Support is at 6,050.
The Dow finished at 42,982 (-0.3%) with the low hitting 42,871. Support at 42,750 held. Resistance is at 43,250.
Earnings and Economic News
Before the open: Acuity Brands (AYI), Orion Lighting (OESX), Walgreens Boots Alliance (WBA)
After the close: American Outdoor Brands (AOUT), Concentrix (CNXC), Nike (NKE)
Economic news:
Initial Jobless Claims – 8:30am
GDP – 8:30am
Pending Home Sales – 10:00am
Technical Outlook and Market Thoughts
All of the major indexes broke above key resistance levels on Tuesday following a cease fire deal between Israel and Iran. Oil stabilized, and for now, tension in the Middle East has calmed down.
Last week’s consolidation period was a healthy sign as golden crosses were in the midst of forming on the Nasdaq and the S&P 500. These bullish patterns continue to play out on both indexes and is confirming the near-term run to higher highs.
The Nasdaq cleared and held 19,750 on Tuesday and an area that now represents near-term support. There is retest potential to 19,250 if 19,750 fails to hold.
Continued closes above 20,100 would indicate a run to 20,250-20,500 with last December’s all-time top at 20,204. This level represents the triple top breakdown from late February.
The S&P 500 surged above 6,050 on Tuesday and is now fresh support over the near-term. There is wiggle room down to 6,000, if breached.
Fresh resistance is at 6,100 followed by 6,150 and the all-time peak at 6,147. Closes above the latter two levels would be bullish for a possible run up to 6,250-6,300.
The Russell 2000 broke above 2,135 on Tuesday and a level that held on Wednesday’s session low. Backup support is at 2,100-2,075 if 2,135 fails to hold.
Resistance is at 2,175. Closes above this level could lead to a quick trip up to 2,200-2,300.
The Dow cleared its June 11th peak at 43,115 with Tuesday’s intraday peak at 43,183. Closes above 43,250 would be bullish for upside towards 43,750-44,000.
A move below fresh support at 42,750 would signal possible weakness down to 42,500-42,250 and the 200-day moving average.
The Volatility Index (VIX) closed below 17.50 for the second-straight session with the 50-day moving average in a sharp downtrend. This level is now key resistance. The index is also in the early stages of forming a death cross and typically indicates lower lows. This is bullish for the market.
New support is at 16.50-16 with yesterday’s low at 16.68.
New and shaky support levels that we are now watching: Nasdaq 19,750; S&P 6,050; Russell 2,100; and Dow at 42,750. A drop back below these levels would would indicate a possible false breakout.
Momentum Options Alerts Update
Closed Momentum Options Trades for 2025: 29-9 (76%, 10 triple-digit winners) / 2024: 77-17 (82%, 38 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.
ProShares Bitcoin ETF (BITO, $21.56, up $0.41)
Option: BITO August 22 calls
Expiration Date: August 15th
Entry Option Price: $0.60
Current Option Price: $0.60
Exit Target: $1.20
Return: 0%
Stop Target: None
Action: Lower resistance at $21.50-$21.75 was recovered with the peak reaching $21.66. Support is at $21.25-$21 and the 200-day/ 50-day moving averages which are in the process of forming a golden cross.
A close above $22 would be a bullish development for a quick trip to $23.50 and our near-term Price Target by mid-August. If reached, these calls will be $1.50 in-the-money. This would give the Alert a return of 150%.
AT&T (T, $27.92, down $0.36)
Option: T August 30 calls
Expiration Date: August 15th
Entry Option Price: $0.40 (6/20/2025)
Current Option Price: $0.30
Exit Target: $0.80
Return: -25%
Stop Target: None
Action: Key support at $28 failed to hold on the fade to $27.88. Resistance is at $28.50.
A trading range has been in play from $27-$28.50 since late April with a little stretch to the downside. Typically, the longer the range, the bigger a breakout, or breakdown, can become and be more substantial. We have a near-term target of $30-$32 for the stock. A double would occur, technically, if shares are above $20.80 by mid-August as the call options will be 80 cents in-the-money.
Applied Digital (APLD, $9.82, down $0.50)
Option: APLD July 15 calls
Expiration Date: July 18th, 2025
Entry Option Price: $0.45 (6/16/2025)
Current Option Price: $0.15
Exit Target: $0.90
Return: -67%
Stop Target: None
Action: Shares tagged a low of $9.70 with upper support at $9.75-$9.50 getting tripped but holding. A close below $9.50 would be a bearish situation. Key resistance is at $11.
Kinross Gold (KGC, $15.48, down $0.04)
Option: KGC July 17 calls
Expiration Date: July 18th, 2025
Entry Option Price: $0.40 (6/13/2025)
Current Option Price: $0.15
Exit Target: $0.80
Return: -63%
Stop Target: None
Action: Yesterday’s low tagged $15.18 with upper support at $15.25-$15 getting breached but holding. Resistance remains at $15.75-$16.
We are looking for a triple-top breakout above $16 that could carry shares up to $17.50-$18 at some point this month, or next. The chart remains bulls with the 50-day moving average in a strong uptrend and shares in an ascending triangle.
Bank of America (BAC, $46.85, up $0.19)
Option: BAC July 48 calls
Expiration Date: July 18th, 2025
Entry Option Price: $0.42 (5/27/2025)
Current Option Price: $0.85 (closed half at 80 cents on 6/24/25)
Exit Target: $1.25
Return: 96%
Stop Target: 60 cents (Stop Limit)
Action: Shares made a trip to $45.65 with late February and lower resistance at $45.50-$46 getting recovered. A close above the latter gets $47-$48 in play. Key support is now at $45 with a drop below this level likely tripping the stop.