Good morning, traders…

This is setting up to be a huge week for the stock market. 

Let’s start with my morning watchlist:

Advanced Micro Devices Inc. (NASDAQ: AMD)
Huge gap-up on Wednesday, following a strong breakout the day before and a $6 billion share buyback announcement. Big momentum here — strong candidate for directional trades today.

UnitedHealth Group Inc. (NYSE: UNH)
The stock has been cut nearly in half from its highs. Order flow points to a potential dead cat bounce, and it was gapping up Tuesday morning. Looks like a high-potential day trade setup — could move independently of SPY.

International Game Technology PLC (NYSE: IGT)
Unusual bets on this name after earnings. Thinly traded stock, but a surprising amount of call volume. Watching over $17 for continuation toward $18–$19. A speculative setup, but worth noting.

Western Digital Corp. (NASDAQ: WDC)
Strong bounce off recent lows and seeing large orders on the September 19 expiration contracts. Needs to clear the $50 level for further upside. Solid swing potential if tech strength continues.

Datadog Inc. (NASDAQ: DDOG)
Heavy move on Tuesday with a textbook VWAP pullback and close near the high. Watching over $118–$120 for continuation. One of the cleanest setups on the list.

Palantir Technologies Inc. (NYSE: PLTR)
This one hit new all-time highs yesterday. Still showing strength and good sentiment. Watching for momentum to hold above breakout levels.

Uber Technologies Inc. (NYSE: UBER)
Also tagging all-time highs. Similar setup to PLTR — great relative strength, solid range.

Rocket Companies Inc. (NYSE: RKT)
Getting active again. Could benefit from renewed confidence in rate cut expectations. Keep an eye on volume and order flow — fast mover when it gets going.

C.H. Robinson Worldwide Inc. (NASDAQ: CHRW)
Saw a 20%+ day on Tuesday, now sitting near a triple-top range. It’s a high-IV name, but if it breaks out, we could see a big continuation.

Tesla Inc. (NASDAQ: TSLA)
The technicals look fantastic here. Clean reactions to prior levels, now testing the $340–$360 zone. Watching for a move toward $350, which has history as both support and resistance. One of the top names on my radar this week.

Last, but certainly not least…

SPDR S&P 500 ETF Trust (NYSEARCA: SPY)
The market is starting to look overextended after a strong push, and SPY is now boxed in a range. I’m watching the $589 level — a break above could offer a quick move higher. Otherwise, expect slower, possibly red action coming soon. 

And thinking about SPY brings me to our next topic…

Where Does the Market Go Next?

Ever since the major indexes started sliding lower in mid-February, traders far and wide have been asking themselves the same question…

“Is the bottom in?”

This is a classic dilemma for anyone trading a broad pullback or correction. How do you know when the overall selling pressure is fading away? How do you determine when it goes from “catching a falling knife” to an undeniable buying opportunity?

The first step is to understand “the why.” Why were stocks getting sold off in the first place? Was it purely due to trade policy, or were other forces bubbling beneath the surface?

Once you’ve figured out “the why,” then you can use technical indicators, market internals, and overall sentiment to gauge “the when” (i.e., when we can be confident that a bottom has been set).

These questions might sound ridiculous after the market has surged 22% in five weeks. You might be thinking that the bottom is obviously in…

But the market is designed to exploit that complacency. It has an uncanny way of doing this. As soon as traders are lulled into a false sense of security, only then does the market make a surprising left turn.

That’s why I want you to look at this question from all angles to make the most informed decision possible. 

So, if you’re still struggling to decide whether the major indexes have hit a bottom yet, watch this video to hear my thoughts:

P.S. If you want access to the system that achieved an 89% win-rate with a 72% average gain…*

From which the top 120 trades have ALL generated 100% or higher — with 27 soaring above 200%, and 12 exploding beyond 300%…*

Then NOW is the time to start using my OMEN System.

Join the great Danny Phee this SUNDAY, May 18 at 4:00 p.m. EST for a LIVE OMEN WORKSHOP.

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*Past performance does not indicate future results