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Transcript

Markets Try to Bounce - SPY & QQQ Setting Up for a Daily Swing Low

Markets are flashing signs of a potential bottom—but is this a short-term bounce or the start of a real recovery?

Introduction:

As of March 8, 2025, we may finally be seeing a daily cycle low forming in the markets.

📉 SPY, QQQ, & DIA may be bottoming—but weekly cycles are still declining.
📉 DXY remains weak, while 10-Year Yields show signs of rebounding.
📈 Gold & Silver retracing after extended rallies.
📉 Bitcoin & Ethereum still struggling to find direction.
📈 Natural Gas showing long-term strength—breakout ahead?

Is this just a short-term bounce or a real reversal? Let’s break it down.


Market Breakdown & Key Levels:

📊 SPY ($SPY) – Potential Daily Swing Low Forming

  • Day 37 of the daily cycle—extremely late, due for a bounce.

  • Friday’s low: $565.63 → If this holds, a new daily cycle begins.

  • Must close above $577.39 to confirm a swing low.

  • However, the weekly cycle is still declining (Week 7).

📌 Key Takeaway: Expect a bounce, but it may just be a lower high before another leg down.


📊 QQQ ($QQQ) – Same Setup as SPY, But Slightly Stronger

  • Needs to close above $493.28 for a daily swing low.

  • Weekly chart: Resistance at $513.00.

  • Still in a left-translated weekly cycle—watch for a lower high.

🚨 Short-term bounce likely, but trend remains weak.


📊 DIA ($DIA) – Oversold, Ready for a Bounce?

  • Needs a close above $429.32 for a daily swing low.

  • Bigger resistance at $440.69 on the weekly.

  • Similar picture as SPY & QQQ, but slightly weaker overall.

📉 A dead-cat bounce, or can the Dow finally reverse?


📊 IWM ($IWM) – Small Caps Struggling

  • Needs a close above $207.11 to confirm a short-term low.

  • On a longer time frame, November may have been a major top.

  • Breaking $200 opens the door to much deeper downside.

📌 Key Takeaway: Small caps remain weak—watch for relative strength before buying.


📊 SMH ($SMH) – Semiconductors in Critical Spot

  • Needs to close above $225.75 for a daily swing low.

  • Weekly resistance at $235.37.

  • Still in a choppy consolidation on the monthly chart.

👀 Semis have led this market—if they break lower, watch out.


The Macro Picture: Bonds, Yields, and the Dollar

📉 $DXY – Dollar in a Weak Position

  • Bearish pattern—daily cycle high lasted only 7 days.

  • Already in Week 23 of the weekly cycle—oversold?

  • If it breaks lower, we could see $100.00 tested.

📉 DXY looks weak—but is it due for a counter-trend rally?


📈 10-Year Yield ($TNX) – Possible Bottom Forming

  • Looks like we’re on Day 3 of a new daily cycle.

  • Weekly chart shows potential for a rebound.

  • If confirmed, rising yields could put pressure on stocks again.

📌 Watch for a short-term bounce—rising yields would NOT be bullish for stocks.


Crypto Breakdown: Bitcoin & Ethereum Stagnant

📊 Bitcoin ($BTC) – Weak Price Action

  • Still stuck in a range—daily cycle is already on Day 8 but going nowhere.

  • **Monthly swing high formed—not a good look for bulls.

  • Key resistance: $89,028 → If BTC can’t reclaim this, more downside ahead.

📉 Market structure remains weak—wait for confirmation before buying.


📊 Ethereum ($ETH) – Even Weaker Than Bitcoin

  • Swing high formed below $3,095.

  • Major resistance ahead—downside remains open.

🚨 ETH is looking worse than BTC—caution advised.


Gold, Silver, and Commodities

📊 Gold ($GC) – Finally Pulling Back

  • Day 5 of a new daily cycle—still early.

  • Key support: $2,894 → Must hold to keep the trend intact.

  • Weekly cycle remains bullish—expect a continuation higher.

📌 A needed pullback—could be a dip-buying opportunity soon.


📊 Silver ($SI) – Struggling to Hold Gains

  • Needs to close above $32.76 next week to avoid more downside.

  • Daily support: $32.12 → If lost, expect deeper pullback.

📉 Silver is looking weaker than gold—proceed with caution.


📊 Natural Gas ($UNG) – Looking Strong on Higher Time Frames

  • Month 12 of an early bull cycle.

  • Holding up well despite broader market weakness.

  • Needs to stay above $4.22 to remain in an uptrend.

📌 One of the few assets showing strength—could be a solid play.


Final Thoughts: Dead Cat Bounce or Real Reversal?

  • Daily cycle lows are forming—but weekly cycles are still in decline.

  • DXY is breaking down, but bonds/yields are stabilizing.

  • Gold & Silver look strong long-term but pulling back short-term.

  • Crypto remains in limbo—no real signs of a breakout.

  • Natural Gas is holding up well—one of the few bullish setups.

📌 Key Takeaways:
✔️ SPY, QQQ, DIA likely bouncing—but don’t trust it too much.
✔️ The longer trend remains weak—expect lower highs.
✔️ Bitcoin & Ethereum still look vulnerable.
✔️ Gold remains strong but due for a pause.
✔️ Natural Gas could be a sleeper trade.


Call to Action:

Is this just a short-term bounce or the start of something bigger?

💬 Drop your thoughts in the comments!
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