{"id":228212,"date":"2025-08-01T06:19:33","date_gmt":"2025-08-01T10:19:33","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?p=228212"},"modified":"2025-08-04T03:49:41","modified_gmt":"2025-08-04T07:49:41","slug":"chart-advisor-as-go-the-mnms-so-goes-the-market","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-as-go-the-mnms-so-goes-the-market\/","title":{"rendered":"Chart Advisor: As Go the MNM\u2019s, So Goes the Market"},"content":{"rendered":"\n<p>By&nbsp;<a href=\"https:\/\/links.investopedia.com\/u\/click?_t=36ba8fa8372241d58b3bfc06997a4332&amp;_m=d1463795e4a644fd89fb43e9ee3f22bd&amp;_e=pLl5QYrf-ZNpTHAL-UfFs6BiEyuMH9p9iFjoYYe1pkxXUhDYITqVMYmDkxFzRDAVtREfN5ligqgq9TwZR9TEBorQGvEuig6sEgSPAPfmzWw_9FbTfCWTTKD_Ezpu3oJCFeudhAO_f2L0SXHx52odGHHlcQ7D4leqy1GgLRhpE8iDRGjrmhXSIRQtQORzzqlx1szw_kmQKNgJE1HYbvLv9fCixAD7pSR5jTXB3ObjbeI9rpqdjEfBgSt2yJLIU3QeaiKpsqMD_DQ_CbpYRWbxcjYbemUHSdXvVCX391fsy_bol8WHfW5_oCNuds903J3W8EssH-ig00T-tvtfOL4_7ThQIjRKL7GjnyvZ_PNXMbC15S258ctQXFI7EHFDEND512rpaThOlTAHlvRKGH3uo0v1F6FiGSIwvABlEbfIAH_EVeqU7CuovNQEXlpUzmyVzMK5BZMXZYytINOsKduK0Q%3D%3D\">David Keller, CMT<\/a><\/p>\n\n\n\n<p><strong>1\/ As Go the MNM\u2019s, So Goes the Market<\/strong><\/p>\n\n\n\n<p><strong>2\/ Declining Volume Hints at Waning Momentum<\/strong><\/p>\n\n\n\n<p><strong>3\/ Tesla Remains a \u201cSit on Your Hands\u201d Play<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with CMT Association on this newsletter. &nbsp;The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1\">1\/<\/h2>\n\n\n\n<p><strong>As Go the MNM\u2019s, So Goes the Market<\/strong><\/p>\n\n\n\n<p>In a week where four of the Magnificent 7 stocks are reporting earnings, it becomes crystal clear that the trend in the broader markets is essentially driven by the trends in these mega cap growth stocks.&nbsp; Shares of Meta Platforms (META) are anticipated to break out after a strong earnings beat, meaning META, Nvidia (NVDA) and Microsoft (MSFT) will all be in primary uptrends.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"550\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/MSFT-1-1100x550.png\" alt=\"\" class=\"wp-image-228213 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/MSFT-1-1100x550.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/MSFT-1-700x350.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/MSFT-1-300x150.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/MSFT-1-768x384.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/MSFT-1-1536x768.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/MSFT-1.png 1600w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/550;\" \/><\/figure>\n\n\n\n<p>The strength in these three charts represents three winning themes since the April 2025 market low: cloud computing, artificial intelligence, and social media.&nbsp; And while Nvidia will report earnings next month, both Microsoft and Meta registered solid results this week.&nbsp; Assuming a post-earnings breakout for META, confirming a move above resistance around $740, I\u2019ll focus on following these trends as long as possible.&nbsp; The 21-day exponential moving average should serve as an effective tool to track these uptrends in the coming weeks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2\">2\/<\/h2>\n\n\n\n<p><strong>Declining Volume Hints at Waning Momentum<\/strong><\/p>\n\n\n\n<p>Any time a market is moving to new highs, I like to regularly review the evidence to look for any signs of trend exhaustion.&nbsp; For the S&amp;P 500 index, I\u2019m noting weakening volume readings which could be an early sign of a lack of willing buyers.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"550\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/SPY-3-1-1100x550.png\" alt=\"\" class=\"wp-image-228214 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/SPY-3-1-1100x550.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/SPY-3-1-700x350.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/SPY-3-1-300x150.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/SPY-3-1-768x384.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/SPY-3-1-1536x768.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/SPY-3-1.png 1600w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/550;\" \/><\/figure>\n\n\n\n<p>We\u2019re using the Chaikin Money Flow (CMF) in this chart, which is a volume indicator created by Marc Chaikin to track volume trends weighted by daily price performance.&nbsp; With the CMF well into positive territory, this would suggest that the S&amp;P 500 is in an accumulation phase.&nbsp; But a closer look reveals a bearish divergence between price and the CMF over the last two weeks.&nbsp;&nbsp;<\/p>\n\n\n\n<p>This suggests that recent down closes on heavier volume represent distribution as investors sell into recent market strength.&nbsp; If the Chaikin Money Flow would drop below the zero level in the coming weeks, that would be in line with previous pullbacks where a divergence preceded a meaningful decline as sellers took control.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3\">3\/<\/h2>\n\n\n\n<p><strong>Tesla Remains a \u201cSit on Your Hands\u201d Play<\/strong><\/p>\n\n\n\n<p>Earlier this week we referenced a classic Jesse Livermore quote about the \u201ctime to go fishing\u201d chart, and used Starbucks (SBUX) to illustrate a consolidation phase.&nbsp; The key with this type of chart is to wait for the market to make its move, with a breakout from the pattern as confirmation of the new direction.&nbsp; Shares of Tesla (TSLA) are demonstrating a very similar phenomenon but with a coil pattern of lower highs and higher lows.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"550\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/TSLA-1100x550.png\" alt=\"\" class=\"wp-image-228215 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/TSLA-1100x550.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/TSLA-700x350.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/TSLA-300x150.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/TSLA-768x384.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/TSLA-1536x768.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/08\/TSLA.png 1600w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/550;\" \/><\/figure>\n\n\n\n<p>A symmetrical triangle or \u201ccoil\u201d pattern is formed when a stock experiences a strong move in one direction followed by a narrowing of the range.&nbsp; The price basically fluctuates higher and lower around an equilibrium price, which in the case of TSLA sits around $320.&nbsp; Note that the 50-day and 200-day moving averages have flattened out and the RSI is almost dead neutral at 50.&nbsp; Both of these features serve to confirm the sideways price action.<\/p>\n\n\n\n<p>At this point, a rally above resistance around $340 would exit the triangle pattern to the upside, clearing the mid-July swing high and unlocking further upside targets.&nbsp; On the other hand, a drop below $300 would confirm a breakdown scenario, making a new swing low and suggesting downside to at least the 38.2% Fibonacci retracement level around $270.&nbsp; But until we see a breakout from this consolidation pattern, investors could be best served by remaining patient.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 31st July 2025<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By&nbsp;David Keller, CMT 1\/ As Go the MNM\u2019s, So Goes the Market 2\/ Declining Volume Hints at Waning Momentum 3\/ Tesla Remains a \u201cSit on Your Hands\u201d Play Investopedia is partnering with CMT Association on this newsletter. &nbsp;The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing [&hellip;]<\/p>\n","protected":false},"author":186,"featured_media":228213,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[14,18,6,8,9,22,23,26,3],"tags":[2233,158,1385,910,1169,262,156],"contributors-categories":[13686],"class_list":{"0":"post-228212","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-etfs","8":"category-macro","9":"category-north-america","10":"category-region","11":"category-securities","12":"category-stocks","13":"category-technical-analysis","14":"category-text-articles","15":"category-traders-insight","16":"tag-chaikin-money-flow","17":"tag-msft","18":"tag-nvda","19":"tag-sp-500","20":"tag-sbux","21":"tag-spy","22":"tag-tsla","23":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This 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