| | | | Berkshire’s Exploding Cash Pile?
First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter.
Berkshire Hathaway has a $382 billion cash pile that was growing by $17 million an hour during the last quarter. Let's look at their numbers as Buffett has just two months left at the helm.
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Nike's Support Test at $60: Technical Setup for a Potential Major Bounce
When Fibonacci Retracements Meet Critical Support, the Market Tells You Something
There's something pretty interesting happening with Nike (NKE) right now, and it's exactly the kind of setup I love watching — one where the math lines up with the price action in a way that makes you sit up and pay attention.
I've been tracking Nike's move down to the $60 support level, and we're right in the ballpark where things could get interesting. This level represents a 618 Fibonacci retracement — one of those key markers that often signals where a correction might run out of steam.
The question now isn't whether Nike got to this level. It clearly did. The question is what happens next, and there are two very different paths from here.
The Make-or-Break Level at $56
If NKE breaks below $56, this setup is probably going lower. That's the line in the sand for me. Below that threshold, and we're likely looking at a deeper correction that extends this downward move.
But here's what I want to see instead: Nike needs to hold this current level and turn higher with some real enthusiasm. Not just a weak bounce that fizzles out, but genuine buying pressure that shows conviction.
There's a downtrend line coming down that NKE will need to break through if this reversal is going to have legs. That's the technical hurdle that separates a failed bounce from a legitimate trend change.
Wave Structure Points to a Potential Bottom
When I look at the broader wave structure here, it appears Nike had a strong rally that ran out of juice, followed by a retracement. What we're seeing now looks like a C-wave completing a correction pattern.
I've been watching this setup for a while, and we're in the proportion zone where NKE is probably going to bottom out if it's going to hold. The Fibonacci math combined with the wave count suggests this is where buyers should step in — if they're going to step in at all.
This is one of those situations where patience pays off. If Nike doesn't hold this support area, it's probably heading to a lower low. But if it does hold and we get that enthusiastic reversal with a break above the downtrend resistance? That could set up for a significant bounce off this critical support level.
Keep this one on your radar. The setup is there, the technical levels are clear, and now we wait to see which way Nike breaks.
Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!
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