Market Tumbles: Fed Meeting, Options Expiration Loom

Summary

The market experienced significant selling pressure today, particularly in high-flying tech stocks, with the S&P 500 down 6% and the NASDAQ down 1.15%. This decline occurred ahead of the Federal Reserve meeting tomorrow and options expiration on Thursday, which may contribute to the selling. The SMH, a leading indicator, is now trading below an inclining trendline that has supported its upward trajectory since March 30th. This could signal a confirmed break if a daily close remains below it. On the weekly chart, a topping tail from June 1st is still intact, suggesting potential downward pressure. Despite a slight drop in the US 10-year yield and oil prices, major indices did not benefit, indicating profit-taking or options market influence. Gold and silver are approaching near-term resistance levels after breaking down from trendlines. US oil is showing signs of a potential bounce near support at $75.56, with resistance at $86.26. Natural gas has bounced back to resistance at $3.34. Bitcoin is showing a near-term bounce potential from the bottom of its channel at $74,500, but a larger head and shoulders pattern still targets moves below $40,000. Apple is breaking down within a parallel channel, with potential support at $288.62. Hood is on watch for a breakout retrace and bounce play, with potential entry points below $89. BE is attempting a breakout above a declining trendline, but requires confirmation with a close above $297.97. Roblox is showing potential for a breakout, with buying opportunities on pullbacks to $48.43, targeting $53.92. Tomorrow, key players like MU, SNDK, and STX, which were previously strong performers, will be watched for bearish reversal signals.