The stock market cooled off today after Friday’s Jackson Hole fireworks — and that’s not a bad thing. We got a classic inside day setup across the indexes, a bullish sign of digestion that sets up the next move.
Index Overview
- SPY: Down just –0.3%, muted price action, holding under resistance.
- QQQ: Inside day, watching for a break over 574 as the next trigger for tech.
- IWM: Pulled back –0.9%, but today’s action stayed inside Friday’s big range. Over 235, small caps could rip higher.
Inside days are powerful because they consolidate energy from a bigger move without giving it back. After Friday’s monster run, this was the perfect reset.
Stocks on Watch
- MP / USAR (Rare Earths): Both had strong moves with liquidity and range. Watching MP for continuation above $20 toward $25.
- AEHR: Post-PR hockey stick base breakout. 26M float, great volume — tradable both intraday and for swing entries on dips.
- RKLB: Wedge breakout with 30M volume. Slight fade end of day, but range is excellent. A rest day makes this stronger.
- Pot stocks (MSOS / MSOX, CGC): Flag setups, potential rippers if sector momentum continues.
- RUN / ENPH / SHLS / ARRY (Solar): Sector strength with clean bases. RUN over $16.50 is the clearest breakout.
- FSLR: Pulled back to the bone zone and held the 9 EMA. Narrow range day, potential pop setup.
- SHOP: 12 days of consolidation, broke the trendline. Trigger above $145 could target $155.
- UWMC: Mortgage stock basing, prime for small cap rotation.
- PSKY: Hot IPO, two tight inside days. Trigger around $16.60.
Caution Flag
The only red flag: Ethereum’s sharp –10% pullback today. Instead of consolidating, ETH gapped down and faded all session. That’s not ideal, since crypto often signals market risk appetite. Could be a shakeout — or a warning sign.
A good pattern to practice on all these would be the first pullback pattern. It is clean and easy to find daily so you.
Strategy Insight: Use Earnings Season to Your Advantage
Earnings breakouts are trending harder and cleaner than most momentum names right now. REAL, MERC, and AQST are all evidence of that. Run your scans in the morning for fresh earnings movers and look to trade the first dip if the tape confirms strength.
Today’s inside day setup is bullish digestion after Friday’s run. If SPY and QQQ break higher and IWM clears 235, the next leg of the rally is on. Focus on liquid momentum setups like MP, AeHR, RKLB, and RUN.
👉 Want to trade these setups live with me? Join the 60-Day Bootcamp.
About the Author
Kunal Desai is the founder of Bulls on Wall Street, trading full-time since 1999. He’s taught thousands of students how to master day and swing trading through live mentorship and his renowned 60-Day Bootcamp.
