SpaceX made headlines with its initial public offering, which is now the largest in history, debuting with a 19% increase to close at $161 per share, and further rising 8% on the following Monday. Jay Woods, a seasoned trader and chief market strategist at Freedom Capital Markets, highlighted critical price levels for traders to watch.
The anchored volume-weighted average price is currently at $167.50, which the stock has already surpassed. Woods emphasized the importance of the $175.50 level, noting that if SpaceX maintains an average closing price above this threshold for five to ten days, it would allow insiders to sell up to 10% of their shares. This could influence trading dynamics significantly.
Additionally, Woods pointed out that traders are also keeping an eye on the S&P 500's previous high of 7,620 for signs of market recovery, and mentioned CarMax as a stock to watch due to its recent breakout, suggesting potential buying opportunities. The upcoming Federal Reserve meeting is also a focal point, particularly in relation to oil prices, which could impact economic policy discussions