Stock Market Bloodbath! What’s Next After Friday’s Sell-Off?

Friday was a brutal day for the stock market, with heavy selling across the board. The S&P 500 ($SPY) and Nasdaq ($QQQ) got crushed, and many top tech names broke key support levels.

Is this just a one-day shakeout, or are we about to see a bigger correction? Let’s break it down.

Market Overview: What Just Happened?

• China COVID Fears triggered algo-driven selling.
• Big Tech stocks collapsed—Microsoft, Google, and Tesla all broke key support.
• Semiconductors and AI names got smoked—MU, AMD, and NVIDIA all down.
• Momentum plays rolled over—Palantir and other high-flyers took a beating.

Key Levels to Watch in $SPY and $QQQ

• S&P 500 ($SPY):

  • Testing the 50-day moving average—will buyers step in?
  • If we break below, watch for 520 as the next major support.

• Nasdaq ($QQQ):

  • Also sitting near support, but still not fully oversold.
  • Needs to hold 430—otherwise, next stop is 420.

Top Short Setups (Bear Flags Everywhere!)

1. Microsoft (MSFT)

   • Flat-bottom breakdown—breaking key support.
   • Trade Plan: Short below $405 for a move toward $390.

2. Google (GOOGL)

   • Bear flag breakdown—showing serious weakness.
   • Entry: If we gap up and fade, short under $140.

3. Tesla (TSLA)

   • Trend is clearly down, breaking key levels.
   • Setup: If it breaks $330, we could see a big move down.

4. Meta (META)

   • Finally showing weakness after weeks of strength.
   • Trade Plan: Look to short pops into resistance.

Potential Bounce Play (Only If It Sets Up!)

5. Amazon (AMZN)
   • Oversold rubber band setup—sitting at key weekly support.
   • Trade Idea: If it gaps down to $210, look for a quick reversal trade.
   • Only go long if we see clear buying action.

Avoiding Fakeouts: How to Approach Monday’s Open

If we gap up Monday morning…

• Watch for failed bounces—resistance levels could reject stocks lower.
• Look for short entries in weak names like MSFT, GOOGL, and TSLA.

If we gap down…

• Look for Amazon as a potential bounce setup.
• Check for support holding on $SPY and $QQQ.

• Be selective—don’t try to catch a falling knife unless you see real strength.
• Stick to high-probability setups—short bear flags, play clean bounces.
• Wait for confirmation—if the market gaps up but fails, fade the move.

Join our 60-Day Trading Bootcamp and learn how to trade like a pro!
Sign Up Here

The post Stock Market Bloodbath! What’s Next After Friday’s Sell-Off? appeared first on Bulls on Wall Street.