SPY Hits Huge Fibonacci Level!
RLT Newsletter
Monday gave us yet another bullish day in the market as this relentless rally continues higher. SPY is now pushing into a major Fibonacci extension zone, and what makes this area especially important is that there are actually three major overlapping Fib levels all lining up between roughly $740-$744.
Those levels are:
• The 300% extension from the 2022 drop
• The 200% extension from the 2025 drop
• The 161.8% extension from the 2026 drop, also known as the Golden Ratio
You can see from the chart below just how important these levels tend to be historically and how they often mark meaningful turning points or pauses in the market, especially when several major extensions stack on top of one another like this. In fact, the Fibonacci extensions from the 2022 bear market have essentially called every major pullback we’ve seen since price first tagged the 1.618 extension back in July of 2024.
SPY 3 Day Chart
Meanwhile, the QQQ is now setting records for the longest streak in its history without touching the 10-EMA, making this one of the most extended rallies we have ever seen by several different metrics. Because of that, I am expecting at least some kind of pause or short-term correction in this area.
Several of the Trillion Dollar Titans are also starting to look like they may want to rest a bit and work off some of these gains before continuing higher. The same goes for many of the semiconductor names that have largely fueled this melt-up rally over the last several weeks.
MU in particular looks like it may be nearing a short-term top after an absolutely ridiculous 162% run higher. The stock gapped up again on Monday and printed a tiny indecision candle — a sign of a market slowing down and catching its breath. A close below Monday’s candle would likely be the first warning shot. A close below Friday’s candle, and we’re probably looking at a deeper retracement, potentially back toward the $500 area.
Of course, if MU decides to continue doing what it has done throughout this entire rally and simply ignore gravity altogether, the next major resistance could come near the 3.618 Fibonacci extension, which lines up closely with a $1 trillion market cap around $877.
MU has only registered an 85 on the daily RSI four times in its entire history — 1995, 2020, 2025, and now 2026. In all three prior instances, the stock initially paused or pulled back modestly before ultimately resolving higher. There’s no fundamental reason to believe this time should be any different.
MU Daily Chart
So many of the trades I have been discussing lately continue to hit targets almost immediately. The “hot stonks,” as I like to call them, all exploded higher again Monday with names like AAOI, CRDO, RKLB, COHR, and LITE all making massive moves.
This market still has not really shown much rotation behavior yet. Instead, the strong just continue getting stronger while every short-term pullback into moving averages keeps producing solid buying opportunities almost immediately.
One area that I still think may have some upside room left is the quantum computing sector. IONQ, which remains my favorite stock in the space, had an absolute monster day Monday after printing a 10-out-of-10 hammer candle Friday. It also gave a similar hammer setup off the 20-EMA back on April 28th, so the signals were definitely there that buyers were stepping back into the once loved name.
QUBT is gapping up big on earnings Monday afternoon and could easily continue pushing toward $13.50 if buyers continue stepping in Tuesday morning. RGTI has also built a pretty solid-looking base here and honestly looks like it could become a $24 stock surprisingly quickly if momentum really kicks back into gear.
RGTI Daily Chart
As far as high-beta momentum swing trades go, this remains one of the more interesting areas of the market to me right now. I think Tuesday could end up being a very bullish day for the sector, and aggressive swings or day trades may offer the best risk/reward setups if these names really start moving again.