Monday Market Milestones

RLT Newsletter

Aug 16, 2026

The markets pulled back ever so slightly on Friday, with SPY and QQQ closing nearly flat on the day and the week. After two rip-roaring bullish weeks, some rest and consolidation makes a lot of sense here. As I keep saying, the path of least resistance remains higher. The bulls are in control, and dips are buyable as long as key support levels hold.

SPY Daily Chart

For SPY, the key support level is the prior all-time high around $760. A pullback to $754, right around that old resistance turned new support, would also be perfectly healthy. I would not want to see SPY start taking out $746, especially on heavy volume with gaps lower. That type of vertical downward price action would be a warning sign.

I want any pullback we get to be choppy and meandering, where we can still confidently say the bulls are in control and this is simply profit taking.

For QQQ, the key level is $701. That is the gap fill and island reversal level, and if it takes a few weeks to get there, it should also line up with the 100-day SMA. I expect the 100-day SMA to creep up toward that level before the end of August, giving us a very solid line in the sand to watch throughout the month of September. The $700 island reversal level and 100-day SMA should be the critical support zone for QQQ.

QQQ really looks like it wants to join SPY at all-time highs. As long as that support holds, I will continue buying dips if they come.

QQQ Daily Chart

Trillion Dollar Titans

When we look at the Trillion Dollar Titans, which are huge drivers of QQQ, we have seen a pretty good amount of weakness over the last week or two, yet QQQ has continued to hold up well.

AAPL, GOOGL, AMZN, and AVGO have all been sold off hard and look like they are at least due for a relief rally. If we get another week of weakness in these names, many of them will be moving into major buy zones and support areas. That makes it less likely that even a modest QQQ pullback turns into a major breakdown.

AMZN Daily Chart

Meanwhile, the semis and AI trade are trying hard to regain leadership. If that happens, we could push higher again despite the weakness in some of the Trillion Dollar Titans.

Past leaders like SNDK and MU are showing a lot of strength. All last week I was making videos and articles about the prime setups in the AI space, and we are now starting to see some follow-through.

SNDK Daily Chart