Good Morning Traders! In today's Morning Memo, we will discuss NQ, ES, SPY, QQQ, AAPL, MSFT, AMZN, NVDA, GOOGL, META, and TSLA.
Our proprietary formula, exclusive to RIPS, dictates these price levels. This dynamic equation takes into account price, volume, and options flow. These levels are updated every day and shared with our community, 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:
E-mini Nasdaq-100 Futures (CME: NQ)
NQ is currently trading around 29093.25, giving back an overnight push that briefly lifted it above Friday's high. Friday's session high at 29326.00 and low at 28987.00 are the two references that frame the morning. Just under price sits the healthy bids zone Rips is watching on air between 29033.00 and 29051.75, and buyers need to defend it to keep any bounce attempt alive. A clean move back above 29326.00 would show buyers taking control, while a break below 28987.00 would put NQ at fresh lows for this pullback. Rips trades NQ live at 8AM ET, so tune in to see how he plays the open.
E-mini S&P 500 Futures (CME: ES)
ES is currently trading around 7663.75, sitting near the bottom of Friday's range after an early overnight rally faded. Friday's high at 7714.25 and low at 7648.50 are the key references today. The healthy bids zone Rips is watching on air runs from 7648.50 to 7653.50, right on top of Friday's low, so that pocket is the first real test if sellers press. Holding it keeps a rotation back toward 7714.25 possible, while losing it would open the door to a wider downside session. Catch the live show at 8AM ET for Rips's full read on how the broader market opens.
SPDR S&P 500 ETF Trust (NYSEARCA: SPY)
SPY is currently trading around 760.50, a touch above Friday's official close at 759.97 in early trading. Friday's opening bounce stalled near 761.32, so that is the first area buyers need to clear. If they reclaim it and hold, price may work back toward Friday's high at 763.47, with Thursday's close at 763.96 sitting just above as the level that would erase the late week slide. Friday's volume came in lighter than the recent average, so watch whether buyers show up with more conviction this time.
If price slips back below 759.97 and cannot recover, Friday's low at 758.68 comes into view, which is also the lowest level SPY has traded in more than a month. Below that, the 755 strike stands out as the area where options positioning is heaviest, and Friday saw a very large block of 755 puts change hands. A return above 761.32 would weaken that downside path, especially with the Fed decision and big tech earnings still ahead this week.
Invesco QQQ Trust Series 1 (NASDAQ: QQQ)
QQQ is currently trading around 703.75, slightly below Friday's close at 704.40 as the biggest tech names pull in different directions. Buyers first need to recover 704.40. Holding above it could support a move toward Friday's high at 709.30, which capped the rebound from Thursday's sharp drop. A push through 709.30 would put Thursday's high at 715.43 back on the radar, though that is a bigger stretch for one session ahead of the Fed.
On the downside, Thursday's low at 701.90 and Friday's low at 701.16 form a tight floor just below price. If that floor breaks and cannot be recovered, the 700 strike, where options positioning is heavy, becomes the next area to watch. Recovering 704.40 would weaken the downside case. Microsoft and Alphabet report Wednesday after the close and Amazon follows Thursday, so QQQ could stay choppy until those numbers land, and leadership from the largest names will matter more than usual.
Apple Inc. (NASDAQ: AAPL)
AAPL is currently trading around 343.50, slipping below Friday's low after touching 351.73 that session, its highest level in more than a month. The first job for buyers is to reclaim 343.99, Wednesday's close, which sits right overhead. If buyers hold above it, price may work back toward Friday's low at 345.75, with Friday's close at 347.73 as the bigger repair. A return to that close would put the stock back inside last week's upper range.
If price breaks below Thursday's low at 342.28 and cannot recover, the 340 area comes into play, where put positioning is heaviest and last Monday's low at 340.12 lines up with it. Below that, last Tuesday's low at 338.70 is the next reference. A return above 345.75 would weaken that downside path. Apple is one of the weaker large tech names premarket, and its earnings report is scheduled for November 2 after the close, so traders may stay cautious into that date.
Microsoft Corp. (NASDAQ: MSFT)
MSFT is currently trading around 527.00, already above Friday's high at 525.77 and one of the firmer large tech names this morning. If buyers defend that 525.77 area, price may work toward last Tuesday's close at 531.87 and then the 533.28 to 533.60 shelf where both Wednesday and Thursday ran out of steam. Clearing that shelf would mean the stock has fully repaired Thursday's selloff and is trading back near the top of its recent range.
If price slips back under 525.77, the 525 strike, where options positioning is heaviest, and Friday's close at 524.51 are the next areas buyers need to protect. Losing those would point toward Thursday's low at 520.30, with Friday's low at 515.70 below. A recovery back above 525.77 would ease that pressure. Microsoft reports quarterly results Wednesday after the close, so the stock may trade on positioning ahead of that report, and early strength deserves some patience before it is trusted.
Amazon.com Inc. (NASDAQ: AMZN)
AMZN is currently trading around 248.50, a little above Friday's close at 248.00 after Thursday's drop of nearly 5 percent. Buyers first need to clear Friday's high at 250.01, which sits right next to Thursday's close at 250.38 and the 250 strike, where options positioning is heavy. If buyers reclaim that area and hold it, price may stretch toward last Monday's low at 255.22, a level that marked the base of last week's rally.
If price falls back below 248.00, which was both Thursday's low and Friday's close, sellers may test Friday's low at 246.45. Below that, the late September lows at 245.14 and 244.73 sit right by the 245 strike, where put positioning is heavy. A move back above 250.38 would weaken that downside path. Amazon reports Thursday after the close, so this week may be more about holding the floor than chasing a breakout before the numbers are out.
NVIDIA Corporation (NASDAQ: NVDA)
NVDA is currently trading around 211.25, just above Friday's close at 210.96, which was its lowest close in more than a month. Buyers first need to recover Thursday's close at 212.21. Holding above it could support a move toward Friday's high at 213.85, with the 215 strike, where options positioning is heavy, as the next stretch. Friday's options trading showed heavy call selling at the 215 and 217.50 strikes, so that area may take real buying to clear.
If price slips below 210.96 and cannot recover, Friday's low at 210.18 is next, right on top of the 210 strike, where put positioning is heaviest. Losing that pocket would leave NVDA at its lowest levels in more than a month. A return above 212.21 would weaken the downside scenario. Nvidia's own report is still weeks away, so it may trade more on what Microsoft, Alphabet and Amazon say about their spending plans later this week.
Alphabet Inc Class A (NASDAQ: GOOGL)
GOOGL is currently trading around 321.25, holding just above Friday's close after a week that took the stock down about 6 percent. Buyers need to reclaim Thursday's low at 322.00 first. If they hold it, price may work toward Thursday's close at 324.22 and Friday's high at 324.53, which together form the nearest ceiling. Getting back above that pair would be the first sign that the weekly slide is losing momentum.
If price breaks below Friday's low at 320.18 and cannot recover, the stock would be trading at its lowest level in more than a month, with little recent chart history nearby to lean on. That makes the reaction around 320.18 especially important, and a fast move back above 322.00 would weaken the downside case. Alphabet reports Wednesday after the close alongside Microsoft, so the stock may stay in a holding pattern until then, and a breakdown before the report would be a warning sign for the group.
Meta Platforms Inc (NASDAQ: META)
META is currently trading around 622.50, down sharply premarket and well below Friday's low at 633.27, extending the slide that followed its earnings report last week. Buyers first need to reclaim 633.27. If they recover it and hold, price may push toward Thursday's low at 639.69 and then Friday's close at 642.62, the level that would fill today's gap. That is a lot of ground to make up, so a partial recovery would still be progress.
If price cannot recover 633.27, the September 8 low at 609.74 is the next chart reference, followed by the early September lows at 605.27 and 604.35, which sit near the 600 strike, where put positioning is heavy. A move back above 633.27 would weaken that downside path. META is the weakest of the large tech names this morning, so watch whether the selling eases after the open or spreads into the rest of the group.
Tesla Inc. (NASDAQ: TSLA)
TSLA is currently trading around 379.50, gapping above Friday's high at 377.32 and leading the large tech names premarket. Tesla said Latvia approved its FSD self driving system, a small but fresh headline. The first upside test is the 380 area, where Wednesday's low at 380.51 lines up with the 380 strike, one of the heavier options positioning areas. If buyers clear it and hold, price may work toward Wednesday's close at 386.47 and then the 388.84 to 388.86 highs from Wednesday and Thursday.
If the gap fades and price slips back below 377.32, Thursday's close at 374.58 and Thursday's low at 373.71 are the next references, with Friday's close at 372.22 below. Losing 372.22 would erase the morning gain entirely. A return above 377.32 would weaken that downside scenario. TSLA has whipsawed since reporting earnings last week, so the open may decide quickly whether this gap is accepted or sold.
Final Word: Today's U.S. calendar is light, with the Chicago Fed National Activity Index at 8:30AM ET and the Dallas Fed Manufacturing Survey at 10:30AM ET. Neither usually moves the market much on its own, but the Dallas survey gives a quick read on factory activity and price pressure in Texas. The bigger story is the week ahead: the Fed rate decision on Wednesday at 2:00PM ET, followed by the press conference at 2:30PM ET, with Fed officials in their quiet period until then. Thursday brings third quarter GDP along with the September PCE inflation data at 8:30AM ET.
Overnight, futures climbed early Sunday evening before giving most of that back. Oil eased after Brent reached its highest level since April on Friday amid reports of possible strikes on Iran, and the 10 year Treasury yield is sitting close to 5 percent. Higher energy costs and yields near those levels tend to weigh on growth stocks, so keep an eye on both if tech struggles to bounce.
Among the Magnificent 7, Tesla, Microsoft and Alphabet are firmer premarket while Meta and Apple are the clear laggards, which leaves NQ close to flat. Microsoft and Alphabet report Wednesday after the close and Amazon reports Thursday after the close. Friday's volume in SPY and QQQ ran below their recent averages, so watch whether participation improves today and whether buyers can hold any opening bounce on the first pullback. Good luck, trade safely, and have a great Monday!
You can catch Rips every Monday through Friday at 8AM ET streaming live for FREE on YouTube at https://www.youtube.com/@RipsTrades and on Kick at https://kick.com/rips where he breaks down the markets in real time and helps traders level up.