Market Downtrend: Key Levels and What to Watch

Summary

Markets are currently showing bearish sentiment, with most rallies being shorted, particularly in tech stocks like QQQ, SPY, and Nasdaq. Key levels to watch for QQQ are 700 and 688, with potential downside towards 640 if the weekly timeframe breaks below the 9 EMA. The SPY is near a daily gap fill around 730, and a break below 732 could lead to lows around 724. Semiconductors like SMH are showing more resilience, but still face resistance. Individual tech stocks like Tesla are showing weakness, with shorts favored below 385. Nvidia and AMD are also expected to see further downside. Intel and Hood are noted as potential relative strength plays. The upcoming SpaceX IPO is expected to bring significant volatility. The core PPI came in at 0.4% month-over-month, slightly below the forecast of 0.5%, and unemployment claims were higher than expected at 229 compared to 220. The main trading strategy for today is a 'pop and fade' on major indices, anticipating further downside.