🐺 Did the Market Setup a Bear Trap?

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Support was tested, tech headlines sparked a rebound, and now the question is whether this bounce can stick.

TESTING SUPPORT LEVELS

Markets tested key technical levels today. The $QQQ ( ▲ 0.41% )  lost its 20-day moving average intraday and nearly broke the 50-day MA, while the $SPY ( ▲ 0.57% )  also slipped below its 20-day before recovering in after-hours trade. By the close, both $SPY ( ▲ 0.57% ) and $QQQ ( ▲ 0.41% ) had bounced, showing buyers are still stepping in at support.

Beneath the surface, rotation has been noticeable. Defensive sectors like $XLV ( ▲ 1.02% ) are attracting capital as investors look for stability. $UNH ( ▼ 0.43% )  has bounced sharply off its lows, and Leverage Shares 2X Long UNH Daily ETF $UNHG ( ▼ 1.04% )  posted a massive +60% gain over the last month… evidence that money is flowing beyond the AI leaders and into steadier corners of the market.

GOOGLE & APPLE AFTER-HOURS JUMP

News out of the U.S. courts sent shockwaves through Big Tech. $GOOGL ( ▲ 0.31% )  spiked 7% AH yesterday on a favorable verdict, while $AAPL ( ▼ 0.55% )  jumped 3% AH in sympathy. These moves added fuel to the post-market recovery and could set the tone for today’s open if momentum holds.

WHAT’S NEXT?

Could the market rally back from here? Possibly… but patience is key. Everyone knows seasonality can weigh on equities into late summer, and expectations for a correction remain elevated. For now, the best approach is to stay observant, manage risk, and let the market prove whether this bounce has legs.

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Have a profitable week!

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