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This week, markets are experiencing significant fluctuations, with the SPY recovering from a sharp decline but still facing uncertainty.

The Dollar is breaking down from a wedge pattern, potentially leading to further losses, while Nvidia is plummeting from a rising wedge, targeting support levels at $100, $90, or even $86.

As volatility persists, cautious trading is advised, with potential sudden rebounds and further downsides looming.

Let’s dive into the charts! 

* SPY *

S&P 500

Following last week's decline of 3,656 points, the worst correction in years, the SPY opened Monday with another huge 1,456-point gap to the downside that it already filled by Tuesday's close.

If it holds within this upward channel we can expect at least the 539 level gap to be filled before potentially reaching into supply, otherwise, the 507 gap and demand below look promising.

* DXY*

U.S. Dollar Index

The Dollar appears to be gradually breaking out of a small wedge to the downside, resting near the 102.9 level.

In such highly volatile and uncertain times, significant caution is necessary, as a rebound could be severe and suddenly trap bears, but price looks hungry for more downside liquidity first.

* NVDA*

NVIDIA Corp

Nvidia is aggressively breaking to the downside out of a rising wedge, surely looking for at least the demand zone at 100 but likely ready to go as low as 90 or even to fill the gap at 86.

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* MARKET INSIGHTS *

Economic Vibe

Movers & Shakers

• Kenvue Inc (KVUE) +14.678%

• Uber Technologies Inc (UBER) +10.927%

• Henry Shein Inc (HSIC) -8.108%

* HEADLINES *

Top Reads

• Super Micro Computer Misses Earnings Estimates, Announces 10-for-1 Stock Split (Yahoo Finance)

• Dow Jones Futures: Stock Market Rally Begins (Investors)

• Citigroup whistleblower denied share of $400 million penalty (Yahoo Finance)

• Stock market turmoil ‘only half complete’, warns Wall Street giant (Yahoo Finance)

• Kamala Harris Says Rebuilding The Middle Class Is A Top Priority (Yahoo Finance)

• Why investors may want to wait before buying the dip: 'Don't rush to try to catch a falling knife' (CNBC)

• Intel severance: Chipmaker sets terms for buyouts, early retirement and layoffs (OregonLive)

• Rivian lost $1.46B in Q2 as it drives toward a VW-linked future (TechCrunch)

* IDEA *

Trading in Volatile Markets

KEY POINTS

• Use Stop-Loss Orders: Protect your capital by setting tight stop-loss levels to manage risk.

• Stick to Your Plan: Trade with a clear strategy and avoid emotional decisions.

• Diversify Your Holdings: Spread investments to reduce risk and cushion against market swings.

• Stay Informed: Monitor news and use technical analysis to make informed trading decisions.

* WISDOM BYTES *

Ever tried and ever failed?

It’s a part of the journey.

Failure is an inevitable aspect of any attempt to achieve something new, and it’s a natural part of the process.

The key is to try again, regardless of past setbacks. Each attempt brings you closer to success, and with each failure, you gain valuable insights.

The goal is to fail better each time, using each setback as a learning opportunity to refine your approach.

Embrace this iterative process of growth and improvement, knowing that each failure is a step towards eventual success.

* DAILY DOSE *

Memes of the day

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