How To Trade SPY, Tech After Biggest Monthly PPI Drop Since Covid

Good Morning Traders! In today’s Market Clubhouse Morning Memo, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.

Our proprietary formula, exclusive to Market Clubhouse, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with all Clubhouse Members, prior to the opening of the market.

We recommend closely monitoring these stocks, and be prepared to leverage potential breakouts or reversals. As always, stay alert and ready to adjust your tactics based on the market’s pulse to optimize your trading gains. Now, let’s dive into the stock analysis:

SPDR S&P 500 ETF Trust (SPY)

SPY is currently rotating near our 585.75 reference level. For buyers to maintain control, we’d like to see price move up to 587.31 and establish that level as a support base. Should bulls remain dominant, the next upside objective is 589.71. Holding 589.71 during regular trading could open the door to a further move toward 592.00. If momentum remains on the buyers’ side, the high bull objective for the day is marked at 593.73. 

If 585.75 loses footing as a support area, we'll be watching 584.68 as the next key level to monitor. If pressure builds and sellers stay active, the downside may extend to 583.18. A breakdown beneath that could lead to further weakness toward 581.97. Should sentiment shift dramatically to the downside, the low bear objective on the day stands at 580.67.

Invesco QQQ Trust Series 1 (QQQ)

QQQ is currently hovering near our level of 516.58. Bulls need to gain ground above 517.97 and solidify that area as a stable base. A firm hold could lead to a challenge of 518.65, and if strength persists, 519.87 may come into play. Should buyers stay aggressive, we anticipate a possible extension to 521.15. The top-side goal for bulls today is set at 522.57. 

If the auction struggles to stay buoyant above 516.58, sellers may drive the price toward 515.00. Breaking below that level could invite further downside exploration to 513.64. A sustained bearish session may bring 511.53 into play, and if that floor fails to hold, we are targeting 509.87 as the session's lower bear target.

Apple Inc. AAPL

Apple is trading close to our level of 209.81. If bulls want to take charge, they'll need to secure 211.12 and convert it into a platform for higher prices. Holding that zone may propel the stock toward 212.44. Continued strength in the name could push price to 214.07, with the high-side bull objective standing at 215.25. 

Should 209.81 fall through, we'll look to 208.81 for initial support. If sellers persist, a test of 207.93 could follow. Continued downward action may lead to 207.18 being probed, and if pressure intensifies further, our low bear target sits at 206.55.

Microsoft Corp. (MSFT)

Microsoft is currently trading near 450.26. If bulls are able to hold this area and drive price higher, the next upside target is 453.02. A clean move above and hold of this level during market hours could bring 455.77 into view. If bullish energy sustains, the upper boundary we're eyeing for today is 457.25. 

On the downside, if 450.26 can't hold up, expect bears to aim for 448.18. A breakdown there could see the stock testing 446.33, with pressure building into 444.95 if sellers stay committed. Should the auction extend to deeper lows, the low bear target is marked at 442.95.

NVIDIA Corporation (NVDA)

NVIDIA is actively trading near 134.56. A bullish continuation would require price to push above 135.64 and turn it into a support floor. If that transition occurs, look for 136.98 to be challenged next. A healthy bid could bring price action to 137.94, with bulls aiming for a top-side target at 138.55. 

If the bulls can't keep 134.56 intact, we expect the bears to pressure the stock lower toward 133.31. Failing that level could invite sellers to test 132.19. If momentum remains with the bears, 131.42 could be visited, and the session's low-side bear target is placed at 129.53.

Alphabet Inc Class A (GOOGL)

Alphabet is currently auctioning near 163.79. For bulls to stay in control, they need to establish 165.41 as a solid base and push toward 167.04. A sustained rally today could push price toward our upside objective of 169.34. 

If 163.79 fails to act as support, the next area of interest lies at 161.79. A break below there may see the auction retreat to 160.36. Continued weakness could send the name down to our low-end target of 158.54.

Meta Platforms Inc (META)

Meta is auctioning near our level of 650.56. Bulls will want to maintain strength above this area and attempt a move to 655.54. If the momentum holds, the price may rally to 658.86. Should buyers remain in control, our high bull target of 663.33 becomes the key upside marker. 

Should 650.56 give out, the first line of defense for the bulls is at 646.48. Selling pressure below that level could drag the price down to 642.59. If sellers remain dominant, the lower target for the day is 635.49.

Tesla Inc. (TSLA)

Tesla is currently revolving around 340.97. For a bullish day, price needs to climb toward 346.64 and hold it as firm support. If momentum follows through, the next step is 350.87. With sustained buying, 356.80 becomes the next potential area of interest. The bullish stretch target sits at 363.84. 

If 340.97 doesn't hold, we'll be eyeing 333.93 as the next level under pressure. A breakdown through that opens the path to 327.59. If selling intensifies, 322.52 becomes the likely bear target to the downside.

Final Word: 

Today's session is packed with market-moving data. At 8:30AM ET, we'll see the release of April's PPI Final Demand along with Initial and Continuing Jobless Claims. Also hitting the tape at that time are the Philly Fed Manufacturing Index and Empire State Manufacturing Survey—both key sentiment indicators. At 9:15AM ET, attention shifts to Industrial Production, Capacity Utilization, and Manufacturing Output, all offering a deeper look into real economic activity. At 10AM ET, housing data comes into focus with the NAHB Housing Market Index. 

Fed commentary also plays a major role today, with Chair Jerome Powell scheduled to speak at 8:40AM ET, followed by remarks from FOMC's Barr at 2:05PM ET. With inflation, labor, manufacturing, and housing data all hitting at once, combined with Fed commentary, the market may experience heightened volatility. Stay sharp, manage your risk, and be ready to adapt as the data unfolds.

For a limited time during our special promotion, you can join RIPS and get a full access pass to Market Clubhouse for 7 full days for just $7. Check it out at https://marketclubhouse.club/7Days/ where you can trade live with him and tap into his wealth of knowledge and experience. You can also catch Rips on his live day trading streams every Monday-Friday at 8 am EST on the Market Clubhouse YouTube channel: https://www.youtube.com/@MarketClubhouse.