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This week's trades, market movers, and technical levels that count, wrapped up with clarity and precision.
Gareth Soloway reviews a volatile week: tech stock crashes, S&P 500 recovery above key trend line, oil failing to break out, crypto hit by Binance hack, and silver falling below $50.
Key Takeaways
- Tech stocks experienced some of the largest single-day drops in years, driven partly by oil and earnings concerns.
- The S&P 500's late recovery above the 7580 trend line suggests key support held for now.
- Oil's failure to break out of its wedge pattern signals hesitation despite geopolitical or weekend risk.
- Silver's drop below $50 was treated as a buying opportunity by the presenter.
What the video covers
- Weekly market wrap-up hosted by Gareth Soloway of Verified Investing, covering trades, market movers and technical levels.
- Tech stocks sold off sharply: Intel fell about 30% in a day, Google was hit hard, and ServiceNow dropped 25-30%, wiping out roughly a trillion dollars in market value.
- The S&P 500 opened down about 2% but recovered late in the day to close at or just above a key trend line around 7580.
- The NASDAQ Composite and NASDAQ 100 both dropped more than 4% intraday before partially recovering.
- Oil climbed toward $105 a barrel but sold off late in the day, closing back below a wedge pattern and missing a breakout.
- The Binance hack hit crypto markets overnight; crypto remained down but was bouncing.
- Silver fell below $50, and the host made his first physical silver purchase in years at that level.
- The speaker attributes the market moves to oil prices, earnings risk and fear, and references the Fed rate decision and Thursday's PCE data.
- The host frames the price action largely through technical chart analysis of the S&P, NASDAQ, oil and silver.
Full Transcript — Download SRT & Markdown
Speaker A
This is a weekly wrap-up with Verified Investing.
Speaker A
Good afternoon, everybody.
Speaker A
Welcome to the weekly wrap-up.
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My name is Gareth Soloway, chief market strategist here at verifiedinvesting.com.
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And what a week.
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What an ending to the week.
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The NASDAQ in free fall.
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Tech stocks like Intel dropping 30% today.
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Some of the biggest drops even in my career I've seen for companies of this size.
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And we saw Google earlier this week get crushed.
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ServiceNow down 25 to 30%.
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I mean, these were epic drops, to the point where a handful of stocks, you had a trillion dollars evaporate out of the market just from a handful.
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Not even including everything else, but really, multiple trillions vanishing.
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Now, what does it mean?
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Well, we'll have to see.
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But we know oil is one of the key culprits, and earnings are also at risk here, or a fear factor.
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Now, in today's episode, we've got to look at the drop today in the S&P, but miraculously, the S&P recovered to save it from breaking a key level.
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Like, remarkable how, at the end of the day, we got this little bit of a bid, got the markets just above a trend line that I've been watching.
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We've talked about it on these shows, like the game plan, and sure enough, it closed at or above that level.
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In addition, we have the Binance hack, which crushed crypto in the overnight.
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Crypto still down, but bouncing back a little bit.
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Oil today was higher but saw a late-day selloff, which was very intriguing going into the weekend.
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Usually it's the opposite.
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Usually we see oil rallying up because people are so fearful about what could happen over the weekend.
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Instead, we saw a hint of kind of weakness.
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In addition, oil closed back below its wedge, where if it had closed above, it would have been a breakout.
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I mean, these are epic things going on.
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We'll touch on gold and silver.
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Silver getting crushed.
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I actually made my first physical silver buy in years today based on where it got down to, below 50, where if you followed me all year, early in the year I said it was going back to here, hit 50, pierce 50, and we got there today.
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All right, so let's get right into the charts.
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I mean, I think at this point we've got to get right into it.
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I want to show you the S&P intraday.
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Let's take a look.
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Here we have it.
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So, here's the S&P opening lower, at one point down 2%, which is a massive move for the S&P, rallying back up, and see this trend line.
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I'm going to show you the daily chart in just one second.
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But look at how late in the day it got just above that line.
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Remarkably, if we flip to the daily chart, look at this line.
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This is a line that I have been following with you guys.
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We've talked about it, pivot points along the way.
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And then we flip it around here, and then look at today again.
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It was below and recovered.
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The only time it closed below the line, this was the last Fed day, not the one this week, but the last time the Fed raised interest rates and we saw the market panic in the afternoon, it closed below this line, and then the next day the markets rebounded and surged right back up.
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So remarkable where they brought the markets back to close on or just above that level.
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7580 has been the level I've been discussing in my trading game plans, Monday through Friday, 9:00 a.m. Eastern time.
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Now, isn't it amazing how, you know, the Fed was this week, and that almost seems like months ago.
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There's been so much between the earnings announcements, the PCE data that came out on Thursday morning, and then the sell-off that we've seen in tech has been meteoric.
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Now, speaking of tech, folks, let's go to the NASDAQ chart.
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All right, we're going to look at the NASDAQ Composite and take a brief glance here.
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Um, first off, let's go here.
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And this is, really, there's no other way to frame it.
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This is a breakdown here.
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All right.
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Now, listen.
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The NASDAQ recovered to only be down 2.86%.
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86%, but at one point the NASDAQ was down 4%, actually over 4%.
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I remember saying to my live day trading room, and let's just do a measurement here.
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Look at this, to the lows today.
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Yeah.
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3.8% on the, if we were looking at the NASDAQ 100.
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Let's go to the NASDAQ 100.
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At one point, the NASDAQ 100, which is much more concentrated in tech, was down 4.5% from yesterday's close.
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Now, what we saw was, and you might say, well, why did we see a little late-day recovery?
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And you could say, oh, well, they wanted to save it.
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Maybe that's true.
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I don't really know.
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But what I do know is that all of a sudden, late in the day, oil, which had been up to almost $105 a barrel, began to come in.
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And it came in faster and faster in the afternoon, to the point where all of a sudden the markets caught a little bit in the afternoon, and we saw the markets recover some of their losses.
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Now, either way, it was a nasty week.
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It's been a nasty month, honestly, for technology specifically, but this recovery was remarkable.
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Look at this, guys.
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This is the daily chart of oil.
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And you can see how excited I am, because when the charts do this kind of stuff, it just fascinates me so much.
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And you can see early in the day, oil was above this wedge pattern, right?
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We were trading up to $105 a barrel.
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And I was like, oh my goodness, we're going to break out here.
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Oil is going to have a monstrous breakout.
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And then all of a sudden, it faded, closing back below the wedge.
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Now, it doesn't mean it can't break out next week.
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But what it does mean is it didn't break out today.
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And look at that.
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Where is oil?
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Back to $103 a barrel.
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Basically in line with where it's been now for the last week or so.
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From this close here, which was last Friday's close, oil is actually down fractionally from there one week ago.
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And really, again, if you look at the intraday, look at this.
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Here's the big sell-off right at the end of the day.
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We were at $104 a barrel, and all of a sudden we dropped basically down to 103.
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If we flip back to the S&P 500, look at this.
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When oil bottomed or topped, when oil topped, that's what happened to the S&P 500.
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Flipping back to the US oil chart again.
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Let's go back to it.
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Right here.
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Right here.
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There's oil coming back in.
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I mean, just, or I should say there.
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Yep.
Topics:stock markettech stocks selloffS&P 500NASDAQoil pricessilvercryptotechnical analysismarket wrapGareth Soloway
