Tomorrow Is About to Be the Biggest Day of the Week
Tom: Navigating SPY Resistance and Support Levels
The SPY (S&P 500 ETF) is currently testing a critical resistance level around $750, which it has failed to break multiple times. If this resistance holds and short-term support around $740-$743 breaks, a larger sell-off could occur, targeting support zones at $740 and then $730-$732. Conversely, a decisive break above $750 would be a strong bullish signal. The market is in a euphoric but potentially unstable environment, with margin debt relative to M2 at its second-highest level historically.
Momentum Plays: Coinbase, Teldoc, and Lumen Technologies
Three momentum plays are identified: Coinbase (COIN) to the upside, targeting a breakout above $164.50; Teldoc (TDOC) to the upside, looking for a break above $9.15 after a strong uptrend; and Lumen Technologies (LUMN) to the downside, watching for a breakdown below $7.10 after a significant drop. These trades are contingent on breaking specific price levels and require strict stop-loss management due to their volatility.
Mike Dantonio: The RBRK Big Money Trade
A significant trade involving RBRK (cloud data management) shows a trader buying 90-strike call options expiring in September 2026, risking $2.7 million to potentially make $6.55 million. This is structured as a call debit spread, also shorting 100-strike calls. RBRK has shown strong short-term momentum, up 95% from its April lows, and is testing its recent high around $86.50. The company benefits from security vulnerabilities related to AI developments, and its stock has historically shown explosive rallies from support zones around $45-$50.
