To The Moon

$NVIDIA(NVDA)$ $SPDR S&P 500 ETF Trust(SPY)$ $Tesla Motors(TSLA)$ 

🎯📈 SPY and NVDA Wyckoff Masterclass Amid Market Uncertainty 📈🎯

Wall Street stumbled today (NZ 🇳🇿 time Wednesday 08Jan25), with tech stocks under pressure as upbeat economic data complicated the outlook for Federal Reserve policy. SPY and Nvidia ($NVDA) reflected these dynamics through textbook Wyckoff setups, offering traders clear roadmaps for navigating volatility.

Updated Market Overview

• SPY: $591.25 (0.69 percent lower)

• Nvidia: $141.57 (5.26 percent lower)

• Nasdaq: Down 1.5 percent as tech stocks led declines.

Key movers: Nvidia (5.4 percent lower), Tesla (5 percent lower), Meta (3 percent lower), Amazon (2 percent lower).

Macroeconomic Highlights

1. Labour Market Resilience:

• Job openings in November: 8.098 million (vs. expected 7.7 million, Reuters).

2. Services Activity Strength:

• ISM index for December: 54.1, exceeding expectations of 53.3 and November’s figure.

3. Fed Rate Cut Expectations Shift:

• Traders now forecast the first rate cut in June, according to CME’s FedWatch tool.

These factors added headwinds for tech, particularly Nvidia and SPY, which have experienced sharp declines.

Wyckoff in Action: Key Phases for SPY and Nvidia

Earlier Today ~ Distribution Phase in Motion

📉 SPY and Nvidia tracked the Wyckoff Distribution Phase, completing Phase D as the Upthrust After Distribution (UTAD) reversed into the Sign of Weakness (SOW):

• SPY: Dropped to $591.25, confirming Phase D’s bearish bias.

• Nvidia: Slid to $141.57, marking the culmination of distribution.

Now ~ Accumulation Phase Underway

📈 Both SPY and Nvidia have transitioned to the Accumulation Phase, stabilising at lower levels:

• SPY: Testing support at $590, forming its Automatic Rally (AR) as Phase A develops.

• Nvidia: Consolidating around $141.57, stabilising after aggressive selling.

These movements highlight critical levels for traders seeking early entry into Phase C or E for a potential breakout.

Levels to Watch and Trade Ideas

SPY

• Support: $590

• Resistance: $595

• A breakout above $595 could signal accumulation completion, while a dip below $590 would confirm weakness.

Nvidia

• Support: $140

• Resistance: $145

• Increased volume near $145 resistance could confirm institutional accumulation.

Market-Wide Focus

• Nasdaq’s decline (1.5 percent lower) reflects broader tech weakness as traders adjust to Fed policy uncertainties.

Why This Matters

This is a unique confluence of macroeconomic data and technical setups, providing a comprehensive playbook for traders. Understanding Wyckoff phases allows you to anticipate institutional moves and position yourself for success.

Tesla ($TSLA) is exhibiting textbook Wyckoff Accumulation Phase B behaviour, with a corrective structure unfolding. A bounce to $426–$427 is expected before another potential leg down, in line with Wyckoff principles.

Key Levels to Watch

1. Resistance: $426–$427 (golden Fibonacci retracement zone at 0.618)

2. Support Targets: Below $400, aligning with Phase B testing and preparation for a deeper move.

What This Means for Traders

• Short-term Strategy: The expected bounce provides an opportunity for short-term profits near $426–$427.

• Downside Risk: Watch for a rejection at resistance, signalling further declines as Tesla moves deeper into the accumulation phase.

Technical Insights

• Fibonacci Levels: The anticipated bounce aligns with the 0.618 retracement, a key zone for reversal or continuation.

• Wave Structure: Corrective waves indicate a potential completion of (C) before further downside.

• Momentum Divergence: Bearish divergence is consistent with Wyckoff testing weak hands before preparing for a final accumulation stage.

Tesla’s current price action reflects the smart money accumulation phase, providing actionable opportunities for traders. Stay alert for volume confirmation and price movements around critical levels to maximise your setups.

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Happy trading ahead! Cheers, BC 🍀🍀🍀