Yesterday’s short squeeze removed much of the fear priced into the market, while Amazon’s earnings supported the broader AI trade. Here is what volatility forecasts and options positioning suggest for SPY, QQQ and SOXX.

Markets face a volatile session as investors prepare for the Fed interest-rate decision and earnings from Microsoft, Meta, ARM and Qualcomm. Here are the key levels for SPY, QQQ and semiconductors, alongside the options positioning that could drive the next move.

The Fed is expected to hold rates, but a hawkish vote split could pressure equities, strengthen the dollar and increase volatility. We examine the semiconductor sell-off and the key SPY, QQQ and SOXX levels traders should watch.

ASML stock fell after reports that China had begun producing domestic immersion DUV lithography machines. The long-term competitive risk is real, but limited production and unverified performance suggest the sell-off may be overdone, with market positioning highlighting $1,600 and $1,500 as key levels.

This stock market outlook for the week covers the FOMC decision, PCE inflation, Mag 7 earnings, SPY and QQQ positioning, VIX flows and the key levels traders should watch.