QQQ and SPY have broken down through a bearish diamond pattern, with the Nasdaq setup using a 770 high and 713 low to imply a measured move toward 682 if the flush continues. The tape is being read as risk-off: VIX has jumped from about $15 a couple weeks ago to near $21, and a close above or below 21 is framed as the next tell. Against that backdrop, MSFT’s blowout quarter — $90B revenue, $4.81 EPS, 43% Azure growth, $100B+ annual Azure revenue, 30M paid Copilot users, and $678B contracted cloud backlog — is the main bullish exception, while META, SOFI, MU, and SPCE are each at pressure points or trade setups. The video ends on a market that can still squeeze higher in crowded shorts like SPCE, but the broader read is that the selloff only pauses if MSFT holds gains and the major indexes stop breaking down.
QQQ broke to the downside as a bearish diamond pattern on the Nasdaq confirmed.
SPY also confirmed the diamond breakdown, with the market described as flushing after the Fed pause was ignored.
The diamond pattern uses a 770 high and 713 low; the measured move from the breakdown points to a possible low near 682.
A loss of 735 today or for the rest of the week was flagged as trouble, with the move expected to give back half of 2026’s gains.
VIX rose from about $15 a couple weeks ago to near $21; a close above 21 or below 21 is the next signal for the next couple weeks.
CRM was called out around $181 and ran to $190, with $200 still the next watch level.
Duolingo needed a candle close above 142 to continue higher; it failed and was let go.
SERVICENOW was given at 109 with a 117.50 target, hit it in one day, and now needs a couple closes above 117.50 to unlock a possible move to 136.
MSFT cleared 402, and the move was tied to results showing AI spending translating into real growth.
MSFT posted $90B revenue and $4.81 EPS, with Azure growth at 43%, Azure annual revenue above $100B, Copilot at 30M paid users, and contracted cloud backlog at $678B.
MSFT holding gains into week-end is framed as necessary to help pause the broader downturn.
META was treated as bearish with a downside target at 542; it cut through 542 and has not bounced, implying more downside tomorrow.
SOFI was framed as a buy below $15 for a return to $20, and it hit $15 today despite the bearish tape.
USAR was chosen as the rare earths exposure after the Trump magnets commentary and the call to buy what Wall Street says makes money.
MU had a terrible day and fell $138 from top to bottom; the trade was added on the dip around 7:45 and is now underwater.
MU support is around 7:37, resistance around 7:88, and a failure of 7:38 tomorrow opens risk to 6:62; RSI is described as cooked and turning up after hours.
SPCE is getting crowded on the bearish side, and short-covering could squeeze it up toward 130 before a potentially safer re-short.