Warning: Stock Market Is Testing A Critical Support!
In a Nutshell
Markets are testing critical support around 700 after a volatile week that erased $1.3 trillion, with semiconductor names like Micron—now below $1,000—facing sharp pullbacks after their 2026 rallies. If support breaks, deeper corrections loom, and the speaker questions buying dips when stocks that ran hardest could fall to 600-700. Trump’s repeated tweets failed to lift Micron, Bitcoin and MicroStrategy diverged higher, and a weekend deep-dive on semis is planned ahead of the holiday.
These notes were generated by AI and may contain inaccuracies.
NASDAQ ended down 1.73% but is gapping up in overnight trading. The index is testing support around the 700 level, a common support range, while 735-740 represents a common resistance range. Markets began the week celebrating the end of attacks with Iran but corrected over the last two days, ending nearly at the same point where the week started despite significant volatility.
$1.3 trillion was lost from the US market. Semiconductor stocks including SanDisk, Micron, and Western Digital are all down. These companies were among the top performers for 2026. The speaker is questioning whether to buy the dip in these names or whether the rally is over.
Micron is now trading below $1,000 per share for the first time since the initial rally in April, creating concern. From current lows, if Micron returns to previous highs of 1,300, that would represent over a 31% gain.
Markets are overbought and testing the EMA. If support at 700 breaks after consolidation, a long correction would follow. The speaker questions why buy Micron near $1,000 when it could potentially reach 600-700 if markets sell off. Stocks that rallied highest and quickest tend to correct hardest during market declines.
Trump tweeted about Micron for the second consecutive day, attempting to pump the stock. However, the stock sold off even harder following the tweet. Trump promoted his Trump accounts, mentioned that Micron Technology invested over $250 million, and called it a great American company, but also disclosed selling 500,000 or up to $500,000 worth of Micron stock.
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