Zak Mir takes a look at S&P 500, Nasdaq 100, Alphatec, Evoke, Equilium, EZGO, FG Financial, 4D Molecular, Lixte, Sensei, Safety Shot, Tenon, and Workiva.
Market Overview: S&P 500 and Nasdaq 100
S&P 500 Analysis
The S&P 500 experienced a key downside reversal last week, confirming a bearish shift that Zak had anticipated in his previous update. The index tested the July support zone near 6200, with Friday’s low at 6212—just slightly above this critical level. Despite a pre-market bounce, there remains a real possibility of retesting the 50-day moving average line around 6120, a level not breached since early May.
Zak cautions that traders should watch for an end-of-day close below 6200, which could signal another downward leg for the market. The Relative Strength Index (RSI) is currently below the neutral 50 mark, reinforcing the potential for further downside pressure. On the upside, a close above Friday’s high of 6287 would be encouraging, indicating that the recent dip might have been a short-lived event. This scenario could lead to the S&P 500 filling the recent gap and testing resistance near 6335, the floor of the old rising trend channel from April.
Nasdaq 100 Snapshot
The Nasdaq 100 mirrors the S&P 500’s cautious tone. After a key reversal down on Thursday, the index is showing signs of a less steep upward channel, suggesting a potential move toward the extended channel floor and the 50-day moving average at approximately 22,300. Given current momentum, a move down to this zone seems likely before any sustained recovery.
On the upside, the Nasdaq must close above 22,700 to target the gap top near 23,200 and possibly push towards 24,000 by the end of the month. However, with the RSI also below 50, caution remains warranted.
Stock Highlights: Potential Movers for August
Alpha Tech Holdings
Alpha Tech has shown strength by gapping up through its 50-day moving average, a bullish sign especially near the top of its recent range. Zak expects the stock to test the $16 level soon, ideally maintaining support above $13 in the coming days to sustain upward momentum.
Evoke
Previously covered, Evoke experienced a sharp selloff after reaching a peak near $7.25 but found strong support around $3.50, which aligns with the floor of its rising trend channel and the 50-day line. The stock’s sharp rebound above the gap floor at $2.85 and its position above the 200-day moving average around $4 are positive technical signals. Zak is targeting a retest of $7.60 by the end of next month.
Equilium
Equilium shares recently broke above the broadening triangle base at $1.12. Remaining above the 200-day line at 61 cents is crucial for sustaining this bullish momentum. A double bounce at RSI 50 and a rising 50-day average support a possible retest of $1 or higher by month-end.
EasyGo
EasyGo is currently trading within a rising trend channel with a channel top near $0.86. The stock spiked above $0.50, and Zak expects an end-of-day close above this level to pave the way for a move to the 200-day line at $0.56 and potentially up to $0.85 before the end of August.
FG Financial
FG Financial has been on a strong run, breaking through the $15 mark after a bear trap rebound. It recently cleared resistance at $29 and is aiming for $45 in the near term. Key resistance to watch includes the November-December zone around $38, where multiple end-of-day closes above this level would confirm strength.
4D Molecular
4D Molecular continues to build momentum within a rising trend channel, having gapped above its 200-day moving average and neckline resistance at $5.20. Zak targets $9.40 by the end of August, supported by consistent RSI bounces above 50 indicating solid accumulation.
LIX
LIX has broken out of a bull flag pattern above $5, with a target near $5.50 at the top of a long-standing broadening triangle pattern dating back to April last year. Staying above $4.50 and benefiting from a golden cross setup, the stock looks poised for further gains in the coming days.
Sai
Sai is trading within a rising trend channel and recently broke through the 200-day moving average and resistance near $9.30. With the 50-day line rising, Zak anticipates a retest of the March spike around $15 during August.
Safety Shot
Safety Shot exhibits a V-shaped bull flag pattern, characterized by a rally, a partial pullback, and another rally. The top of its falling trend channel stands at $1.33, and as long as the price remains above the broken resistance at $0.80, the stock appears strong. RSI readings consistently above 50 since last month further support the bullish case, with a realistic target of $1.80 by the end of September.
Tenon
Tenon is recovering from lows with a rising trend channel base, having broken resistance near $1.25. Zak projects a climb to the channel top at $3.60 by the end of next month. However, an immediate target is an end-of-day close above the 200-day line at $1.72, ideally achieved by week’s end to confirm momentum.
Workiva
Workiva is another stock gapping up, having surpassed April resistance around $7.70. With a weekly close above the 200-day moving average at $8.30, Zak targets a move to $9.70 by the end of August, indicating a solid setup for continued gains.
Conclusion
This August update highlights a cautious but opportunity-rich environment across major US indices and select stocks. The S&P 500 and Nasdaq 100 face key technical tests around their 50-day moving averages, with RSI trends suggesting potential downside risk before any meaningful recovery.
Meanwhile, several individual stocks, including Alpha Tech Holdings, Evoke, Equilium, and FG Financial, show promising setups based on trend channels, moving averages, and RSI behavior. These equities could offer attractive entry points or targets for traders looking to capitalize on momentum shifts this month.
Staying alert to critical resistance and support levels, as well as monitoring end-of-day closes relative to moving averages, will be essential for navigating the evolving market landscape through August and beyond.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
