Distribution Picks Up, But We Close Okay.
Hi everyone,
I hope you are having a great Wednesday!
In this post I’ll concisely share my thoughts on today’s action.
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Now let’s dive in ↓
Market Action
QQQ Today we say distribution come into the Markets. However we finished off lows after pulling into an area of confluence of the 50 sma, 21 ema, and reversal high pivot area’s.
The IWO also had a wide range day, but finished with near a 50% DCR
Volume
Volume was higher on the NYSE and lower on the Nasdaq.
Trends ( Based on QQQ) - All Turn Up
Shortest - 5 Day SMA - Mixed - Below Rising
Short-term - 21 ema - Up - Above Rising
Intermediate term - 50 sma - Up- Above Rising
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Today we saw some distribution among growth stocks, especially among semiconductors.
Here’s a Daily Group Performance chart from TraderLion Private Access:
Key Stocks in Deepvue
NVDA broke below yesterday’s lows and the base pivot. Supported at the 21ema for now
TSLA - Nice close and forming a range here
UPWK tried to go, failed hard and then closed almost even
IONQ nice follow through
ESTC nice action
FRSH push from the mini flag
ABNB holding the gap up low
Market Thoughts
A bit of distribution is good for the system… is that a saying lol?
We saw some selling and fear come in but nothing is entirely broken yet, this helps take care of the feeling of short term extension. I’d like to see us hold the KMAs and form out ranges now.
Keep an eye out for names showing subtle signs of relative strength, holding KMAs, lows, pivots, pulling back on low volume…
However, if names follow through to the downside and volume picks up, that would be a reason to be more negative. As of right now this looks like a common single distribution day.
Continue to manage risk as always!
What are your thoughts on today’s action? (Leave a comment below)
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Cheers!
Richard