Shooting Stars Confirm Pullback, Rotation Underway
The Shooting Star patterns highlighted last week proved their worth as critical warning signs, reinforced by overbought oscillators and the gaps marked in this publication’s charts. Price action confirmed the warnings, the market opened the week below the central weekly levels for $Invesco QQQ(QQQ)$ ($630) and $iShares Russell 2000 ETF(IWM)$ ($247); the $SPDR S&P 500 ETF Trust(SPY)$ briefly jumped above its central level of $683 on Monday before failing, $NVIDIA(NVDA)$ lost $201 on Tuesday, and $Microsoft(MSFT)$ stayed well below $528 validating bearish momentum.
This bearish setup was true for many individual securities analyzed here last weekend. Conversely, other securities showing signs of consolidation, like $SPDR Gold Shares(GLD)$ and $iShares Silver Trust(SLV)$ , managed to recover their central weekly levels of $366.6 and $43.4 respectively, validating the bounce potential described last Sunday based on volume profile and annual Support/Resistance (S/R) levels.
We also saw bounces in $Berkshire Hathaway(BRK.B)$ following its strong earnings and an oversold daily chart mentioned last Sunday. Furthermore, already oversold stocks like $Meta Platforms, Inc.(META)$ and $Netflix(NFLX)$ are now consolidating in a narrow range. These two were my fundamental analysis priority, allowing those seeking entry points to assess the long-term sustainability of the recent selloff drivers. My full analysis and price targets are available in these publications:
Tech Giants in Transformation: $Netflix(NFLX)$ $Tesla Motors(TSLA)$ $Intel(INTC)$
Tech’s Trillion Dollar AI Bet: $Meta Platforms, Inc.(META)$ $Microsoft(MSFT)$ $Amazon.com(AMZN)$
During the last two weeks I have mentioned the importance of analyzing individual securities, considering the internal rotation happening in the indices, where some sectors or companies are bouncing from oversold levels while overbought ones are finally declining. For that reason the Momentum Map helps watching all the securities in one chart identifying which ones are oversold (red quadrant), which ones are warming up (blue) and bouncing already, others in bullish momentum (green), in extreme cases getting overbought conditions, and others in consolidation or pullback process (yellow).
For a practical reference, let’s see some of the securities analyzed in this publication and their evolution in the Momentum Map:
ETH was roaring in the leading (green) quadrant eight weeks ago, reaching severely overbought conditions, similar to BITCOIN. As we highlighted back then, Bitcoin’s overbought status was clearly signaled by technicals like Bollinger Bands and the annual resistance level of $124K (a level visible in our charts since April 2025). Since then, ETH has fallen to the “weakening” area and is now reaching oversold conditions.
Conversely, BRK bounced from the oversold conditions mentioned last Sunday based on the daily chart and its earnings report, a setup perfectly consistent with the Map’s red quadrant.
On a more developed bullish reversal front, premium subscribers have witnessed the full evolution of $Apple(AAPL)$ and TSLA: moving from the oversold conditions called out in this publication to establishing bullish momentum, and now entering a period of consolidation.
Our combined approach—enriching technical indicators and momentum analysis with Support and Resistance (S/R) levels—provides clarity, with a simple “bullish above and bearish below” framework for navigating securities. Both $Eli Lilly(LLY)$ and $Costco(COST)$ are included in the current S/R levels edition. Finally, inverse ETFs like $ProShares Short S&P 500(SH)$ and $ProShares Short QQQ(PSQ)$ (which move opposite to SPY and QQQ, respectively) were oversold and are now bouncing, moving cyclically through the Map’s quadrants.
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