Good Morning Traders!
Wednesday, October 21 brings a lighter economic calendar, with Atlanta Fed Business Inflation Expectations at 10:00AM ET, followed by the EIA petroleum report at 10:30AM ET. The inflation survey provides a view of businesses’ expected cost increases, while the petroleum report updates crude oil and fuel inventories. The Treasury’s 20 year bond auction follows at 1:00PM ET, providing another test of demand for longer term government debt. Watch whether the auction changes Treasury yields and the stock market’s afternoon direction.
This morning’s mortgage applications report has already been released, showing applications falling 5.3 percent even as the average 30 year mortgage rate eased to 7.41 percent from 7.50 percent. That combination suggests that a modest decline in borrowing costs has not immediately revived demand. It adds housing context without carrying the same broad market importance as a major inflation or employment report.
Corporate news is doing more of the work this morning. SpaceX’s results and Super Micro Computer’s preliminary figures have renewed interest in AI related stocks, while Meta and Tesla report after the close today. Those reports will give investors fresh information on growth, spending and profitability. The early improvement in technology still needs broader participation before it supports a more convincing market recovery.
NVDA and TSLA are leading early, while AAPL, MSFT, GOOGL and META remain below Tuesday’s closes. Watch whether those lagging names begin joining the move, whether volume supports the advance and whether buyers defend recovered levels on a pullback. Keep the nearby levels in view and let today’s price action establish the direction before tonight’s earnings introduce a new set of information
Now, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.
SPDR S&P 500 ETF Trust (SPY)
SPY is currently trading around 770.54, extending Tuesday’s recovery while technology leadership remains uneven. Monday’s high at 770.46 is the nearby area buyers need to defend. Holding above it could support a move toward Tuesday morning’s pullback level at 771.11, followed by yesterday’s high at 772.29. A recovery that holds through a pullback would give buyers a stronger foundation for extending the advance.
If 770.46 fails to hold and cannot be recovered, sellers may test Tuesday’s afternoon rebound high at 770.03, followed by the official close at 769.05. Continued weakness could bring yesterday’s afternoon low at 768.23 into focus. Reclaiming 770.46 would weaken that downside scenario. Watch whether more sectors join the advance, especially with several large technology stocks still trading below yesterday’s closing prices.
Invesco QQQ Trust Series 1 (QQQ)
QQQ is currently trading around 721.81, recovering toward Tuesday’s high with NVDA and TSLA providing early support. Yesterday morning’s pullback area between 720.58 and 720.81 is the nearby support zone to watch. If buyers protect that ground, price may test Tuesday’s high at 722.75. Clearing that barrier could bring Monday’s high at 724.55 into focus. The recovery would become more convincing if strength spreads to other major technology names.
If 720.58 breaks lower and buyers cannot recover it, sellers may test Tuesday’s midday rebound high at 720.18. Continued pressure could bring the afternoon rebound area at 719.67 into play, followed by 718.88. Returning above 720.81 would interrupt that downside path. QQQ is improving, but weakness in AAPL, MSFT, GOOGL and META shows that the rebound still has uneven participation.
Apple Inc. (AAPL)
AAPL is currently trading around 338.70, sitting near Tuesday’s low while the broader Nasdaq attempts to recover. Buyers first need to establish support above that 338.70 reference. If they succeed, price may recover toward yesterday afternoon’s low at 339.14, followed by the official close at 339.50. Clearing those nearby barriers could bring Tuesday’s opening price at 339.86 into focus. Apple needs to recover its own levels to demonstrate improving strength.
If 338.70 fails to hold and cannot be reclaimed, sellers may test the September 28 low at 338.04. Continued weakness could bring the October 12 low at 337.60 into play. Returning above 338.70 would interrupt the immediate downside scenario. Yesterday’s advance to 343.06 faded substantially before the close, so an early bounce alone would leave buyers with more work to do. Watch whether Apple can preserve recovered ground when the market pulls back.
Microsoft Corp. (MSFT)
MSFT is currently trading around 529.55, below Tuesday’s close after yesterday’s recovery failed to retain its afternoon strength. The early rebound high at 529.83 is the first nearby barrier. If buyers reclaim it and hold above it, price may recover toward Tuesday’s late afternoon low at 530.26. Continued strength could bring last Thursday’s low at 531.22 into focus, with yesterday’s official close at 531.87 becoming relevant if the recovery expands.
If Tuesday morning’s pullback low at 529.29 fails to hold, sellers may test Friday’s close at 529.05. Losing that reference could bring Monday’s low at 528.06 into play. Reclaiming 529.83 would weaken the immediate downside path. Microsoft’s earnings remain scheduled for October 28. For today, watch whether the stock begins participating in the technology rebound instead of allowing NVDA and TSLA to carry most of the early improvement.
NVIDIA Corporation (NVDA)
NVDA is currently trading around 220.84, moving above the highs of the past several sessions as semiconductor sentiment improves. Monday’s high and last Wednesday’s low form an important support area between 219.62 and 219.64. If buyers defend that reclaimed ground, price may advance toward last Wednesday’s close at 221.30. Continued strength could bring the October 13 low at 223.06 into focus. Holding the breakout would help establish that the recovery is gaining support.
If 219.62 breaks lower and buyers cannot recover it, sellers may test Friday’s high at 218.68. Tuesday’s high at 218.46 sits just beneath it as another nearby reference. Returning above 219.64 would interrupt that downside scenario. Much of the advance has already happened before the cash open, so watch how the first meaningful pullback develops. Strength across other semiconductor stocks would add support to NVDA’s recovery and the broader QQQ rebound.
Alphabet Inc Class A (GOOGL)
GOOGL is currently trading around 336.11, below Tuesday’s range and lagging the broader technology rebound. The September 24 low at 336.02 is the nearby area buyers need to protect. If it holds, price may recover toward the September 23 low at 337.45, followed by that session’s close at 337.83. Tuesday’s low at 338.36 becomes the next recovery hurdle if buyers clear those initial barriers and preserve their progress.
If 336.02 fails to hold and cannot be reclaimed, sellers may test the October 1 low at 335.51. A recovery above 336.02 would interrupt that immediate breakdown, while reclaiming 337.45 would repair more of the early weakness. Alphabet’s earnings are scheduled for October 28, but today’s task is to stabilize after losing yesterday’s range. An improving QQQ provides a better backdrop, though GOOGL still needs to demonstrate its own buying support.
Meta Platforms Inc (META)
META is currently trading around 691.50, below Tuesday’s close with quarterly results scheduled after today’s session. Buyers first need to recover yesterday afternoon’s rebound high at 692.68. Holding above that level could support a move toward Monday’s low at 693.86, followed by Tuesday’s official close at 694.25. Yesterday’s high at 696.51 becomes relevant if the recovery continues. Those nearby steps matter before looking for a larger reversal of the recent decline.
If Tuesday afternoon’s pullback low at 690.84 fails to hold, sellers may test the earlier low at 689.01. Further pressure could bring the late session low at 687.89 into focus. Reclaiming 690.84 would weaken that immediate downside path. Tonight’s results will provide a separate test of advertising growth and AI spending expectations. During the regular session, watch whether META can hold recovered levels and join any improvement across the broader technology group.
Tesla Inc. (TSLA)
TSLA is currently trading around 379.56, above Tuesday’s range as reports of exploratory SpaceX merger discussions add attention ahead of tonight’s earnings. Those discussions do not establish that a transaction will happen. The October 9 low at 379.71 is the first nearby barrier. If buyers reclaim it and hold above it, price may advance toward the September 22 high at 380.42, followed by the October 5 high at 381.59.
If the October 6 low at 378.52 fails to hold, sellers may test Tuesday’s high at 377.59. Losing that reclaimed breakout area could bring yesterday afternoon’s rebound high at 376.02 into play. Returning above 378.52 would interrupt the immediate downside path. Tesla has already advanced substantially from Monday’s low, making the ability to protect recovered ground especially useful today. Earnings arrive after the close, so the regular session move is still positioning ahead of the report.
Final Word: . Good luck, trade safely, and have a great Wednesday!
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
