Nurse State of The Market 5-31-26 Sunday Market Playbook
A top-down analysis and plan for the week ahead.
🤝 NOTE: This week’s market playbook is still free for everyone. I’m releasing a couple of free playbooks and midweek trade articles so you can see exactly what you get in Nurse in The Market before you decide to become a paid subscriber. 😃
Welcome back to your weekly market checkup!
I hope you had an amazing week!
ICYMI, you can see the last top play of the week here →
A quick highlight from last week →
Snowflake Inc. SNOW 0.00%↑ blew through its 200-day SMA and banged an extreme-high RSI reading, so it’s time to lock in some profits here. SNOW was our top play of the week on 5/14/26. The software trade has been a long time coming.
Price is trading fairly valued now. You can close the trade if it was a swing trade for you or lock in some gains and leave some to run if it was a position trade. Congratulations to you in the SNOW / SNOU trade!
A quick update this week →
I’ve officially opened enrollment for The Stock Market Playbook for Beginners— a live 90-minute workshop designed for people who want to understand the stock market without feeling overwhelmed, intimidated, or like everyone else got a manual they missed.
We’ll cover how the market actually works, how to read charts with confidence, and how to build a framework you can use long after the workshop ends. If you’ve been wanting structure instead of noise, this workshop was built for you.
Reserve Your Seat Here →
Now…let’s dig into last week’s market recap and the playbook for the week ahead →
The markets continued to make history last week!
The Nasdaq (QQQ) and the S&P 500 (SPY) hit new record highs again! Both the QQQ and SPY are back at extreme-high levels.
The Nasdaq has had its best two-month streak since 2002 and has gained 25% in just April and May. The SPY rose for its ninth week in a row.
The Dow Jones (DIA) also hit a new record high and is trading at a near extreme-high RSI reading here.
Bonds (TLT) broke out of its accumulation zone under its 200-day SMA last week! This still presents us with a potential trade idea on any price weakness this week.
Gold (GLD) is holding its accumulation zone here right above its 200-day SMA, which also gives us a potential trade setup.
Oil (USO) closed below its 20-day SMA confirming a decline is underway.
Bitcoin (BTC) is in a decline below its 200-day SMA.
The Nasdaq (QQQ) was the top performing index of the Big 3, while the Dow Jones (DIA) was the worst. The QQQ, DIA, and SPY are hitting new all-time highs, while the QQQ and SPY are both back at extreme levels, the DIA isn’t yet! Use caution here!
I. The Market Vitals (Best to Worst)
Here’s how the 7 major asset classes ranked this week:
The Nasdaq-100 QQQ 0.00%↑
The S&P 500 SPY 0.00%↑
The Dow Jones 30 DIA 0.00%↑
20 Year Bonds Treasury ETF TLT 0.00%↑
Gold GLD 0.00%↑
Oil USO 0.00%↑
Bitcoin ($BTCUSD)
♥️Market Pulse: 5/7
5/7 assets are up.
QQQ, SPY, DIA, TLT, and GLD are up.
USO and BTC are down.
II. Section Rotation (11 SPDR S&P 500 Sectors)
Technology XLK 0.00%↑ was the top performing sector of the S&P 500 SPY 0.00%↑ , while Energy XLE 0.00%↑ was the worst.
The top three performing sectors were Technology (XLK), Materials (XLB), and Consumer Discretionary (XLY).
The worst three performing sectors were Energy (XLE), Consumer Staples (XLP), and Utilities (XLU).
Technology XLK 0.00%↑ continues to climb higher and trade at an extreme-high RSI reading and popped over 2% on Friday!
Consumer Discretionary XLY 0.00%↑ broke out last week and is trading above its 200-day SMA.
Materials XLB 0.00%↑ looks to be setting up for a play here this week. I like trading the UYM for a triple-leveraged materials play.
Financials XLF 0.00%↑ also may be setting up here just below its 200-day SMA. I like FAS for a 3X leveraged financials trade.
Energy XLE 0.00%↑ and Consumer Staples XLP 0.00%↑ are in declines here.
The breakout in Utilities XLU 0.00%↑ failed. Price is trading back below its 20-day SMA and 5-day EMA signaling a possible decline is underway right above its 200-day SMA.
All SPDR sectors except Financials (XLF) are trading above their 200-day SMA here, which is typically a bullish sign. I’m watching the utility stocks closely here along with XLE and XLP.
III. Important Sectors & ETFs
Beyond the main sectors, here’s what stood out this week:
The iShares Expanded Tech-Software Sector ETF IGV 0.00%↑ had an amazing week! Price popped over 8%, broke through its 200-day SMA, and banged an extreme-high RSI reading giving us a profit-taking opportunity in software stocks like SNOW, MSFT, and ORCL!!
Ark Innovation ETF ARKK 0.00%↑ broke out and blew through its 200-day SMA! Price jumped over 7% last week. This is a bullish sign for growth stocks.
iShares Semiconductors ETF SOXX 0.00%↑ reached another record high and is back to trading at an extreme-high RSI reading! This has been an incredible run for semiconductor stocks here like MU, AMD, SNDK, and QCOM.
Gold Miners GDX 0.00%↑ & Gold Miners Junior GDXJ 0.00%↑ have both broken out on Friday, giving us potential trade setups this week.
The Russell 2000 Index IWM 0.00%↑ broke out higher and didn’t hit an extreme-high RSI reading indicating that price still has room to room. Let’s see what price does this week.
Regional Banks KRE 0.00%↑ is setting up for a potential breakout here above its 200-day, giving us a trade idea this week. DPST is my go-to for a triple-leveraged regional banks trade.
SPDR S&P Oil & Gas Exploration & Production ETF XOP 0.00%↑ has rolled over and closed below its 20-day, but has put in a couple doji bars here signaling a bottom could be in here.
I really like GDX, GDXJ, and KRE here for trade setups this week.
IV. What Assets & Sectors I’m Watching
Here’s what I’m focused on next week:
Oil (USO): Will price keep falling here or will price put in a bottom here?
XLE and XOP have both rolled over into confirmed declines here.
Dow Jones (DIA): Will price keep climbing and reach an extreme-high RSI reading after it finally reached a new all-time high?
The S&P 500 & The Nasdaq (SPY & QQQ): The SPY and QQQ are both back at extreme-high readings here. Use caution and don’t FOMO into any positions.
Lock in profits and leave some to run!
Let your winners run!!!
Bitcoin (BTC): Will price stop dropping here or find a bottom?
The RSI isn’t at an extreme-low yet indicating that price still has room to move lower here.
There is a dichotomy here between BTC and mining stocks WGMI 0.00%↑ .
BTC is trading in a decline below its 200-day SMA, while WGMI, CLSK, and RIOT are trading well above their 200-day SMA and tagging extreme-high RSI readings giving us profit-taking opportunities.
Gold Miners Junior (GDXJ): I really like JNUG for a leveraged gold miners junior play this week.
Financials (XLF): I’m looking for a potential set up here if price breaks out. I like FAS for 3x leverage.
Materials (XLB): I’m looking for a potential set up here if price breaks out. I like UYM for 3x leverage.
V. Individual Stock Highlights & Winners From Last Week
Extreme-High RSI Readings & Profit-Taking Opportunities:
SPY, QQQ
XLK, SOXX, IGV
WGMI
NUE, GS, CSCO
AMD, AAPL, MSFT, MU, SNDK, HON, SNOW, ORCL, CLSK, RIOT, JOBY
Leveraged trades: UPRO, TQQQ, SOXL, AMDL, AAPU, MSFU, ORCX, SNOU
Congratulations to everyone in these trades!
VI. Nurse Jess’s Trade Ideas
Here are the setups I’m watching heading into next week:
1. Main Trade Ideas This Week
TLT (on any weakness)
GLD, GDX, GDXJ
XLF, XLB, XHB, KRE
HSY, MCD, NKE, VZ, LMT, NVO, CPB, CE, HD, JPM
META, RACE, LULU, DASH
FUBO, TREE, HIMS
2. Buy & Hold Undervalued Opportunities
These are trading below fair value or set up for long-term entries:
NKE, VZ, HSY, LMT, CPB, MDT, NVO, MCD, BX, CE, FE
META, RACE, LVMUY, LULU, CRSP, TREE
3. Spec Trade Ideas
FUBO, TREE, HIMS
4. Leveraged Trade Ideas
TMF (on any weakness)
UGL, NUGT, GDXU, JNUG
FAS, UYM
DPST, NAIL, PILL
FBL, LMTL, NVOX, HIMZ
5. My Watchlist
BTC, USO, $BRENT
XLP, XLE, XLU, XOP
JNJ, MDT, CVX, COP, WMT, KO, PEP, DOW
GOOGL, NFLX, INTC, NVDA, UBER
YOU, POET
VII. Trade Breakdowns
Here I’ll give you 2 trade breakdowns with a chart markup and detailed explanation.
2 plays I really like here include:
DoorDash Inc. (DASH)
Blackstone Group Inc. (BX)
1. DoorDash Inc. (DASH)
DoorDash Inc. DASH 0.00%↑ is currently trading undervalued and in an accumulation zone below its 200-day SMA.
This presents a nice opportunity to put on a position trade or add to a buy and hold position.
The MACD histogram is ticking upwards towards the bullish side and the TSI has curled signaling the momentum to the upside is in favor here.
I really like DASH here for a position trade to true value.
Profit targets:
An extreme-high RSI reading
Overhead resistance: $190
Fair value target: $205 / 200-day SMA target: $208
First target zone: $235
Previous high target zone: $280
Founded in 2013 within the confines of the San Francisco application renaissance, DASH is an online delivery demand aggregator.
Consumers can use its app to order food on demand for delivery or in-store pickup from participating merchants. Following the 2022 acquisition of Wolt, DASH also provides this service in Europe and Asia.
The company provides also similar services to non-restaurant businesses, such as grocery, retail, and pet supplies.
DASH is rolling out emerging technologies, such as drone delivery, to continually innovate and deliver the best possible service to both supply-side and demand-side participants in its marketplace.
According to Morningstar, DASH has a fair value of $205 and is currently trading undervalued.
DASH is part of the Consumer Discretionary sector (XLY) of the S&P 500 (SPY) and the Special Consumer Services sub-sector.
2. Blackstone Group Inc. (BX)
Blackstone Group Inc. BX 0.00%↑ is back in an accumulation zone again and trading below its 200-day SMA giving us another opportunity to add to a buy and hold position.
Profit targets:
An extreme-high RSI reading
Overhead resistance: $130
200-day SMA target / fair value target: $140
Previous high target zone: $160
BX is the world's largest alternative-asset manager with $1.304 trillion in total assets under management (AUM), including $937.6 billion in fee-earning assets under management, at the end of March 2026.
The company operates with scale in each of its major product lines: private equity, real estate/real assets, credit and insurance, and other alternatives (10% and 7%).
While the firm primarily serves institutional investors (84% of AUM), it also caters to high networth clients.
According to Morningstar, BX has a fair value of $140 and is currently trading undervalued.
BX is part of the Financials (XLF) of the S&P 500 (SPY) and the Asset Managers sub-sector.
VIII. Nurse Jess’s Weekend Market Notes
IX. The Bottom Line
The market is trading an extreme levels and record highs.
Use caution here and don’t FOMO into any trades.
Lock in profits here, but leave some to run!
I like GLD, GDXJ, XLF, and XLB for trade setups this week!
I’m watching USO, and BTC. Along with XLE, XLU, XLP, and XOP.
I really like DASH, BX, and FAS here.
Let me know what you’re watching and thank you so much for reading! 🙌
See you Wednesday for the Top Pick of the Week.🫶
-Nurse Jess 🤝
Great article! I've been adding small amounts to TSCO. I'll bet it will be a stage 1 for a while, but technically a stage 2 now.
The BX observation is the most interesting setup in this piece from a structural standpoint. Alternative asset managers trading below their 200-day at a moment when institutional allocations to alternatives are broadly constructive creates an unusual entry dynamic: the sector thesis and the price action are temporarily pointing in opposite directions. The SNOW profit-taking call was well-timed.
Extreme RSI after an 8% week in software is exactly the moment systematic traders are supposed to sell, not add.
The market rewards discipline at the extremes more than at the midpoints.