Good Morning Traders!
The big event today is the October Consumer Price Index (CPI), which measures what households pay for everyday goods and services. Later, the 10 year Treasury note auction at 1:00PM ET will show how much demand there is for government debt, which matters for rates.
Monday’s bounce was strong, with QQQ up 3.5 percent and SPY up 2.4 percent, while Nvidia fell more than 4 percent on its own headlines. Before the bell the Magnificent 7 are mixed: Alphabet, Amazon and Meta are a little higher, Tesla, Microsoft and Nvidia are a little lower, and QQQ is lagging SPY. Nvidia reports earnings next Tuesday after the close, and the producer price report follows on Friday at 8:30AM ET.
Watch whether buyers defend Monday’s closing levels after the inflation data and whether volume backs any move off the open. A quick reversal after the release would say Monday’s rebound still has work to do.
We we will discuss NQ, ES, SPY, QQQ, AAPL, MSFT, AMZN, NVDA, GOOGL, META, and TSLA.
E-mini Nasdaq-100 Futures (NQ)
NQ is currently trading around 27923.25, giving back a little of Monday’s rebound but still inside Monday’s range. Monday’s high at 28129.25 is the upside reference, and Monday’s low at 26751.25 marks the far floor of that session. Right at price sits the healthy bids zone between 27927.50 and 27947.25, so how buyers treat that area is the first test of the morning. NQ is trading below its dealer gamma flip near 28684.25, a setting where ranges have tended to be wider and moves can run further.
E-mini S&P 500 Futures (ES)
ES is currently trading around 7579.00, holding most of Monday’s rally and sitting a short distance under Monday’s high at 7600.50. Monday’s low at 7363.75 is the lower reference from that session. The healthy bids zone is between 7571.00 and 7572.00 sits just below price, so a slip through it would put the morning’s footing to the test. ES remains below its dealer gamma flip near 7653.00, where ranges have tended to run wider than usual, and the 8:30AM ET inflation report could easily stretch the range. Catch the live show for the full market read as the open unfolds.
SPDR S&P 500 ETF Trust (SPY)
SPY is currently trading around 753.50, just above Monday’s 752.69 close after a strong rebound day that lifted it more than two percent. Monday’s high at 755.42 is the first ceiling. If buyers clear 755.42 and hold it, price may work toward last Tuesday’s 757.07 high, and above that the 762.64 to 765.97 area where last week’s selloff began. The 770 strike, where call open interest is heaviest above price, sits as a stretch reference beyond that zone.
If price slips back below 752.69 and cannot recover, last Tuesday’s low at 752.39 is the next nearby reference, and below it there is little chart structure until Friday’s high at 742.21 and Monday’s low at 741.03. That is a big air pocket, so an inflation surprise could move price quickly. Monday’s options tape also showed heavy put buying at the 710 strike for late November contracts. A firm hold above 755.42 would weaken the downside scenario.
Invesco QQQ Trust Series 1 (QQQ)
QQQ is currently trading around 676.75, slipping under Monday’s 679.35 close and lagging SPY this morning. The 680 strike, where options positioning is heaviest, sits right on top of Monday’s close, with Monday’s high at 682.48 and last Thursday’s 683.65 high just above. If buyers reclaim 680 and push through 683.65, price may stretch toward last Tuesday’s 688.69 high, near the 690 strike where open interest also stacks up. Monday’s volume was the lightest of the last four sessions, so watch whether buyers show up in size.
If price stays below 679.35 and keeps fading, the 670 strike is the next area to watch, and it drew the most call buying in Monday’s options tape. Below that, Friday’s high at 664.52 and Monday’s low at 662.02 mark where Monday’s rally started. A break under 662.02 that cannot recover would erase the rebound and put sellers back in charge of the bigger picture. Getting back above 680 would weaken that downside view.
Apple (AAPL)
AAPL is currently trading around 351.50, just under Monday’s 352.33 high after a solid rebound to start the week. If buyers clear 352.33 and hold it, price may work toward last Wednesday’s 354.50 high and last Thursday’s 355.38 high. That ceiling lines up with the 355 strike, the heaviest open interest on the board for Apple, so expect it to matter. Monday’s options tape showed calls at 355 saw more selling than buying, while the 360 strike drew the most put buying.
If price slips back under Monday’s 350.69 close and the 350 strike, the next references are Friday’s 345.79 high and Monday’s 344.78 low, the base of Monday’s move. Losing 344.78 and failing to recover would hand control back to sellers and put Friday’s 342.37 close in view. Monday’s rebound came on volume close to recent averages, so a push through resistance would carry more weight with stronger participation. A firm hold above 352.33 would weaken the downside scenario.
Microsoft (MSFT)
MSFT is currently trading around 544.50, a touch under Monday’s 545.18 close. Monday’s high at 548.28 is the first level to clear, with the 550 strike just above it, where call open interest is heaviest near price. If buyers push through 550 and hold it, price may work toward last Wednesday’s 555.80 close and last Thursday’s 557.62 high, the area where the drop late last week began.
If price slips under Monday’s low at 538.70 and Friday’s high at 538.33 and cannot recover, the 535 strike and last Thursday’s 532.68 low come into view, with Friday’s 530.61 close below that. In Monday’s options tape, puts at the 530 and 540 strikes saw more selling than buying. Microsoft is also in the news for pushing back on an expected U.S. ban on Chinese data center technology. Holding above 538.33 keeps buyers in charge of the morning, and a clean break through 550 would weaken the downside view.
Amazon.com (AMZN)
AMZN is currently trading around 268.25, bouncing a little after Monday’s session faded from a 275.34 high to close at 266.93, right on the session low. The 270 strike, where options positioning is heaviest, is the first hurdle. If buyers reclaim 270 and hold it, price may work toward last Wednesday’s 271.49 high and last Thursday’s 273.23 high, with Monday’s 275.34 high and the 275 strike as the stretch reference.
If price slips back under Monday’s 266.93 close, the 265 strike and Friday’s 264.18 high are the next support area, with last Wednesday’s 263.85 low just below. Losing 263.85 and failing to recover would put Friday’s 259.30 close in view. Monday’s options tape showed put buying at 270 and call buying at 265 and 275, so traders were active on both sides of this range. Amazon also rolled out its Black Friday week deals, a reminder that the holiday season is close. A firm hold above 270 would weaken the downside scenario.
Nvidia (NVDA)
NVDA is currently trading around 178.50, just below Monday’s 178.67 close after a rough session that touched 170.24 on headlines about a reported federal probe tied to its CEO and a shareholder lawsuit filed Monday. Monday’s high at 179.92 and the 180 strike sit just overhead. If buyers reclaim 180 and hold it, price may work toward last Thursday’s 181.46 low and 181.60 close, then Friday’s 185.22 low. Monday’s volume of more than 460 million shares was the heaviest in more than two weeks, and Wells Fargo kept its positive rating while trimming its price target.
If price fades, the 175 strike, where put open interest is heavy, is the first area to watch, and Monday’s low at 170.24 lines up with the 170 strike below it. A break under 170.24 that cannot recover would put sellers firmly in control. Nvidia reports earnings on November 17 after the close, so headlines and positioning can keep the swings wide. A return above 181.46 would weaken the downside view.
Alphabet Inc Class A (GOOGL)
GOOGL is currently trading around 290.25, sitting on the 290 strike and just under Friday’s 290.49 high after Monday faded from 296.33 to close near its low. If buyers clear 290.49 and hold it, price may work back toward last Thursday’s 295.60 high and the 296.33 to 296.49 ceiling from Monday and last Wednesday. The 300 strike, where open interest is heaviest above price, is the stretch reference.
If price slips back under Monday’s 288.01 low, Friday’s 284.78 close and 284.59 low are the next support area. Losing 284.59 and failing to recover would put last Thursday’s 277.07 low in view. Monday’s options tape showed calls at the 300 strike saw more selling than buying. Fresh headlines on Google’s new AI chips keep the stock in focus. Monday’s fade from a strong open to a close near the low is worth respecting. A firm hold above 290.49 would weaken the downside view.
Meta Platforms (META)
META is currently trading around 644.50, extending Monday’s strong rally of more than five percent. Monday’s high at 647.25 and the late October highs at 647.69 and 648.04 form the first ceiling, with the 650 strike, where call open interest is heavy, just above. If buyers push through 650 and hold it, price would be breaking out above the top of its recent range.
If price slips back under last Wednesday’s 643.09 high and Monday’s 641.37 close, last Thursday’s 634.99 high is the next reference, with Monday’s 630.00 low below. Losing 630.00 and failing to recover would give back most of Monday’s gain. Monday’s options tape showed heavy selling in calls at 635 while calls at 630 drew buying. Monday’s volume was the heaviest since last Thursday’s sharp drop, a sign of real participation in the rebound, and Meta’s new low cost AI model is in the headlines. Holding above 643.09 would weaken the downside scenario.
Tesla (TSLA)
TSLA is currently trading around 375.75, a little under Monday’s 378.05 close after a jump of more than five percent. Price sits right on the 374.30 to 375.50 shelf formed by last Thursday’s high and last Wednesday’s low. If buyers reclaim 378.05 and push through the 380 strike, where options positioning stacks up, Monday’s high at 382.20 comes next, then last Wednesday’s 392.04 high, with the 400 strike as a larger stretch reference. Last week’s slide from above 400 is still the bigger backdrop, so the 392.04 area may draw sellers.
If price slips under 374.30 and cannot recover, there is little chart structure until Friday’s high at 363.84, then the 360 strike and Monday’s low at 360.02. A break below 360.02 would erase Monday’s gain. Monday’s options tape showed call buying at the 375 and 370 strikes. Tesla’s planned solar factory project near Houston is in the news. A firm hold above 380 would weaken the downside view.
Final Word: Good luck, trade safely, and have a great Tuesday!
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.
