Stock Market Sell-Off: What’s Next After Another Brutal Drop?

Today’s Stock Market Sell-Off  downright ugly, and the indices aren’t telling the full story. While the QQQ dropped just 4% in three days, many individual stocks are completely unraveling under the surface.

Earnings winners Getting dumped
High-flyers reversing hard
Small caps breaking key support

The question is: What happens next? Are we in for a bigger pullback, or will we see a snapback rally? Let’s break it all down.

• QQQ down 4% in 3 days, but the pain underneath is worse.
• SPY only down 0.5% today, but it felt like a full-blown sell-off.
• Russell 2000 ($IWM) broke below its 200-day moving average—not a great sign.
• NVIDIA earnings this week—will it save or sink the market?

Today’s action had a classic bear market feel:
Gap up → Fake rally → Rug pull → Waterfall sell-off into the close.

That kind of trap action is brutal for traders—but it also sets up huge opportunities.

Bounce Plays (If We Get a Reversal!)

1. Palantir ($PLTR)

   • Near 50-day moving average—a solid bounce zone.
   • Stochastic RSI is oversold—looking for a short-term reversal.
   • Trade Plan: Watch for a gap down near $85-$86, then look for buyers to step in.

2. Robinhood ($HOOD)

   • Gave back all of its earnings breakout gains.
   • 50-day moving average support at $14.50.
   • Trade Idea: Looking for an undercut and reclaim setup.
3.  OKLO 50SMA IS AT 33

Important Note: These are only valid if we see confirmation of buyers stepping in. If the market remains weak, expect lower prices before a true bounce.

Short Setups (If the Downtrend Continues!)

1. Google ($GOOGL)

   • Bear flag breakdown below $179.
   • If it gaps up and fails, look for a fade play.

2. Microsoft ($MSFT)

   • Lost its trading range—looks weak below $400.
   • Short pops back into resistance for the next leg lower.

3. AMD ($AMD)

   • Clear bear flag near $107.
   • Trade Plan: A break below $107 could send it down to $100 fast.

4. Tesla ($TSLA)

   • Bear flag forming—trend is clearly down.
   • Break below $330 = more pain ahead.

Pro Tip: If the market gaps up and immediately rolls over, short these names on failed bounces! This Stock Market Sell-Off could go for a bit.

• $SPY:

  • Support: 500, then 490.
  • Resistance: 510-515.

• $QQQ:

  • Support: 510, then 500.
  • Resistance: 530.

If we gap down and hold support, we may get a bounce play.
If we gap up and fail, expect more downside.

Stay flexible. The market could bounce or continue selling off—be ready for both scenarios.
Trade smaller size. Volatility is picking up, so protect your account.
Wait for confirmation. If a bounce play doesn’t hold support, it’s not a real bounce!

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