Market Plunge: Key Levels and MU Earnings Outlook

Summary

Overnight markets experienced a significant drop, with the SMH down 5% and Nasdaq futures down 2%. This pullback, occurring just before Micron's earnings report tomorrow, has shifted the market sentiment from bullish to neutral, with major indices like the QQQ and SPY now trading within established ranges. Key support levels to watch include 719 for the QQQ and 735 for the SPY. The semiconductor sector, previously the market's sole driver, is also experiencing a pullback, with DRAM showing weakness. Traders are advised to focus on shorter-term trades due to increased volatility, as indicated by the VIX spiking back towards 20. Micron's upcoming earnings are critical, as a negative reaction could trigger further market declines, similar to what was observed with AVGO's earnings previously. For individual tech names, Nvidia is showing weakness, potentially heading towards 200, while AMD, despite pulling back, maintains a bullish outlook if it holds above 510. Other tech giants like Apple, Google, Microsoft, Meta, Amazon, and Netflix are also being monitored at key technical levels, with potential for further downside or consolidation. SpaceX is expected to revisit its IPO price of 135. The game plan for today involves closely watching the QQQ at 720 and SPY at 730, with a focus on potential pop-and-fade opportunities or reclaim trades if bullish momentum builds within the first 15 minutes of trading. The primary focus remains on tomorrow's MU earnings to determine the market's direction moving forward.