 everyone welcome to the close of July 25th. We have some earnings coming out interesting that Microsoft even though it had a beat obviously not good enough compared to what the expectations were selling off after the market and of course the opposite for Google but we're going to start today's video looking at meta which reports on the close of July 26th. What is the most interesting thing about this chart and you have a few things here that you may not be familiar with is number one it reached exactly to the top of the Bollinger Band when it made its high of 319. Number two it had a very clean reversal pattern we've seen these over and over where it makes a new 60 plus stay high next day closes below the low of that day and then gets some follow-through generally 5 to 10 percent. Number three is it's actually broken down under the Bollinger Band here. Number four is that you can see that it is underperforming the benchmark or against the SPY. Number five in terms of the momentum we did have the mean reversion back here it went on to eke out a new high and you can see that that that mean reversion to the sell side was good now we're getting a bearish divergence where it is breaking down under the 50-day moving average while the 50-day moving average here on the price chart is still much lower and what you cannot see is the July six month calendar range which by the way looks like under 285 would be a breakdown after failing to clear the calendar range high at 318.37. So keep that range in mind because what we're really saying here is that the overall sentiment right now has been in terms of the technicals perhaps atop of course the earnings can potentially change that but my sense would be that there hasn't been any real tangible earnings yet in terms of matter certainly threads hasn't necessarily brought in any money at this point and the VR that they've been launching I don't think has had any kind of record sales so for now where does that come from by the way this is the first trading day first trading range day of July and that's a 284 you can see it's much higher here in terms of the low of yesterday now how I would play this is clearly it may or may not do anything much ahead of the earnings tomorrow but if you just wanted to do it more as kind of a day trading ahead of the fact I would be looking first of all at some support here at this 293.40 level that's right underneath the candle up today it's also underneath the candle bodies of both of these days right here before I went on to make new highs so I would jot that down under 293.30 40 even 293.10 we're talking about an area here that bias to me would be negative and of course we can look at the Bollinger band as a clear indication over 297.50 would be positive and I'm speaking strictly day trading after the report of course as I said there's a breakdown under that six month calendar range low or 284.85 I would anticipate at least a move down to the 50 day moving average and given the momentum is now below it possibly even a move back down to around 258 at these levels now I would actually start considering more of a position from the long side but until then again bias now more to the doubt side let's move on one thing to add about meta is that snapchat just reported and that was down right after the report 17% so that also could be an indication of everything we just talked about on a negative bias towards meta going forward okay now let's flip to the more positive bias which of course is in yesterday's video I mentioned now we had to clear in momentum the zero line we did that I mentioned we had to confirm two days close over the 200 day moving average we did that I mentioned that we really had to get through $80 a barrel we did not do that so that makes tomorrow very easy at this point now we need to look at that 80 as the key should we cross that again I think we'd be looking more at 84 possibly even higher than that should we not be able to get through 80 then I would basically be saying at this point I would watch what happens here at 78 70 so I would have a negative bias under 78 70 for a day trading looking at a move back down to about 7650 77 a positive bias over 80 looking for at first a move closer to 81 50 82 and then from a longer standpoint really looking at a move as we saw yesterday not only over 8350 but levels that we have not seen in a while if we go back to let's say a year ago November moving on to gold so reminder that if it did not break two days in a row under the 50 day moving average it is not a confirmed phase change in this case it would have been to a caution phase instead now we can say we are back to an unconfirmed bullish phase and I say unconfirmed because the same thing it has to have two closes over the 50 looking at the momentum I don't see much a little bit of a pop here from the day before but also needs to do more and we're still seeing a bit of a bearish divergence here in momentum because here's your 50 day moving average in the real motion indicator yet we're above it in price we like to see both together really for the most explosive moves so looking at tomorrow right now what I would say is again let's use that 50 day moving average as the pivotal area so that would mean to me that 1960 exactly what we talked about for coming into today is still going to be a bias below negative a bias above positive you can see 1950 has been holding up relatively well if we continue to break from there and I think we'd have a little bit more of a sharper decline of course we have the FOMC coming out and on the flip side if 1960 maintains a we need a second close above it and B from a trading trading standpoint over 1967 I would think that this will continue to rise at least to get back up to that 1980 level we've been watching before we reevaluate and finally let's take a look at the SPX so here we have folks the SPX and I think the most interesting thing we can say about the chart is first of all from a closing basis you're going to see that we have new closing here on new 50 to two week high closing but what's more interesting to me was that the high from this day was 4578 43 and the high from today was 4580 62 so we did make the high a new high today however look where we closed we closed remember I said the high here was 4578 we close under the old high under today's high which means that we are all we are potentially ripe for a little bit of a sell-off in the S&P so what would we be watching for first of all I would say you can just look right now that this 4565 level is pivotal above bullish below bearish and of course you know I'm talking very short time frame we break below it I would be looking first of all at the supported around 4537 and then if we break down even under that obviously 4520 would be next and we really do have support pretty much all the way down what we don't want to see is this gap get filled from when it gapped up this day at this point now we are thinking a correction might even be a little bit healthy we have still no mean reversion on the Bollinger Band in the actual real motion momentum indicator but certainly that would be something that I would be watching for as well now if we get through this level at 4567 then obviously not only would we potentially be looking at a new 52 week high but once again we've got to go back a little bit here in history to see where we've been and the last major resistance was up I would even go a little bit lower forty six hundred so that's kind of I don't expect to see that in one day although you never know but that would be the next area I would be looking at for some level of resistance as spectacular as this move up has been if we go back you can see we still have a lot of areas to look at for problems going back to when we peaked at the end of twenty twenty one okay that's it for now hope you have a good day tomorrow hope this was helpful and I'll speak to you all again soon thanks for watching bye for now