Market Clubhouse Morning Memo - May 31st, 2024 (Trade Strategy For SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META And TSLA)

Good Morning Traders! In today's Market Clubhouse Morning Memo, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.

Our proprietary formula, exclusive to Market Clubhouse, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with all Clubhouse Members, prior to the opening of the market.

We recommend closely monitoring these stocks, and be prepared to leverage potential breakouts or reversals. As always, stay alert and ready to adjust your tactics based on the market's pulse to optimize your trading gains. Now, let's dive into the stock analysis:

SPDR S&P 500 ETF Trust

SPY SPY is currently trading around the 521.85 level. For bullish traders, an initial push to 522.84 would be ideal. If the price remains strong above 522.84, we expect buyers to drive the price up to 525.26. Should 525.26 hold during regular trading hours, a further rise to 527.36 is anticipated. Our highest bullish target for SPY today is set at 530.09.

If 521.85 fails to hold as support, we anticipate a test of 519.71 by the bears. Should selling pressure increase, the price may drop further to 518.04. A break below this level could see strong support tested at 516.58. In the event of a significant sell-off, our lowest bearish target for the day is 514.62.

Invesco QQQ Trust Series 1

QQQ QQQ is currently trading around 449.36. For a bullish scenario, we want to see the price move above 450.98. Holding this level could lead to a test of 452.98 as a robust support level. Continued buying strength may push the price up to 455.29. If the bullish momentum persists, the next target is 457.55. Our highest target for bullish traders today is 460.55.

Should the price struggle to stay above 449.36, we expect bearish traders to aim for 447.73. Continued selling pressure could see a test of 445.09. If the selling momentum is strong, 442.53 will be the next level to watch. A failure to hold this level could see the price drop to our lowest bearish target for the day at 440.00.

Apple Inc.

Apple AAPL is currently trading around 190.52. For bullish traders, maintaining support at this level is crucial. A push higher could see the price reach 191.57. Sustained buying may drive the price further up to 192.27. If the bulls maintain control, our target for a higher move today is 192.76.

If 190.52 fails to hold as support, we look for a move down to 189.44. Continued bearish pressure could push the price to 188.56. Further selling might test 187.50. Should this level break, our lowest bearish target for Apple today is 186.99.

Microsoft Corp.

Microsoft MSFT is currently trading around 413.14. For a bullish move, we need to see the price stay above 414.56. Holding this level could lead to a rise to 416.32, which should be maintained as support. If buying continues, the price could target 419.17. Our high bullish target for Microsoft today is set at 421.62.

Should 413.14 fail to hold as support, bearish traders will look to push the price to 411.72. A breakdown at this level could see a further drop to 409.69. Continued selling might test 408.46. Our lowest bearish target for Microsoft today is 407.11.

NVIDIA Corporation

NVIDIA NVDA is currently trading around 1,107.30. For the bulls, pushing the price up to 1,117.05 and establishing this level as support is key. Continued buying could see the price rise to 1,125.42. If the bullish momentum is strong, a further rally to 1,142.91 is possible. Our high bull target for NVIDIA today is 1,158.33.

If 1,107.30 cannot hold as support, we expect a test of 1,098.63 by the bears. A breakdown here could see the price drop to 1,091.24. Further selling pressure might test 1,075.18. Our lowest bearish target for NVIDIA today is 1,052.31.

Alphabet Inc Class A

Alphabet GOOGL is currently trading around 171.14. For a bullish move, holding above 172.28 is necessary. If this level is secured, the price could rise to 174.01. Continued bullish action might push the price to our high target of 175.12.

If 171.14 fails to hold as support, we look for the bears to push the price down to 169.34. A break below this level could see a drop to 167.04. Persistent selling might drive the price to our lowest bearish target for Alphabet today at 165.41.

Meta Platforms Inc

Meta META is currently trading around 462.20. For bullish traders, maintaining strength above 465.81 is crucial. This could lead to a rise to 468.38. Continued buying momentum might push the price higher to 470.28. Our high bullish target for Meta today is set at 472.19.

If 462.20 does not hold as support, we anticipate a drop to 458.59. Further selling pressure could see the price fall to 455.87. If this level breaks, our lowest bearish target for Meta today is 453.45.

Tesla Inc.

Tesla TSLA is currently trading around 176.34. For the bulls, pushing the price up to 179.79 is essential. Sustained buying could see the price rise to 182.53. If the bullish rally continues, the next target is 184.10. Our high bullish target for Tesla today is set at 186.10.

If 176.34 fails to hold as support, we look for a drop to 172.61. Continued selling might push the price down to 169.70. A break below this level could see the price fall to our lowest bearish target for Tesla today at 166.89.

Final Word: Today's trading session will be notably influenced by the release of the Personal Consumption Expenditures (PCE) Deflator for April, scheduled at 8:30 AM ET. The PCE Deflator is a critical measure of inflation, closely watched by the Federal Reserve. This indicator provides insights into the rate at which prices are rising and affects the Fed's decisions on monetary policy, including whether to raise, lower, or maintain interest rates. 

A higher-than-expected PCE Deflator reading could signal rising inflation, potentially leading to tighter monetary policy with interest rate hikes to cool down the economy. Conversely, a lower-than-expected reading might indicate subdued inflation, which could encourage the Fed to adopt a more accommodative stance, possibly maintaining or even cutting interest rates to stimulate economic growth.

In addition to the PCE Deflator, today's session is also affected by end-of-month flows and weekly options expirations. These factors can contribute to increased volatility as traders adjust their portfolios and hedge positions. End-of-month flows often involve large institutional investors rebalancing their portfolios, which can lead to significant buying or selling pressure. Meanwhile, options expirations can cause sudden price movements as traders exercise or settle their options contracts.

Given these dynamics, it's crucial to monitor market reactions closely and pay attention to volume spikes, which can provide clues about the strength and direction of price movements. Staying disciplined and adhering to your trading strategy is essential in such a potentially volatile environment.

As always, trade safely, manage your risk appropriately, and keep a keen eye on key levels and market indicators. With the combination of economic data releases and technical factors at play, today's session promises to be eventful and full of opportunities. Happy Friday, and let's aim to finish our trading week on a high note!

The Morning Memo is curated by RIPS, a pro trader with years of experience in equities, options, and futures trading. RIPS is at the heart of the exclusive Market Clubhouse community, offering his insights, expertise, and real-time mentorship.

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This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.