Inside Day at the 50 SMA - Up or Down?
Hi everyone,
I hope you are having a great Tuesday!
In this post I’ll concisely share my thoughts on today’s action
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Now let’s dive in ↓
Market Action
The QQQ was down over a percent and is not back below the 50 sma. Monday’s lows and that level remain critical.
We are still below a declining 21ema.
The IWO also put in an inside day but looks much weaker
SMH - The semiconductors tried to move higher but fell back into yesterday’s range
Note about Volume
Volume was higher on the Nasdaq on this down day but lower on the NYSE
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Down - Below declining
Short-term - 21 ema - Down - Below declining
Intermediate term - 50 sma - Mixed- Below Rising
Longterm - 200 sma - Up - Above Rising
Key Stocks
NVDA put in a stalling day. It gapped up, fell and filled the gap, rallied initially, then closed closer to lows. I’ve sketched out in my chart below two guides for what may happen
The high volume without price progress is negative. Constructive action would be if it can tighten for a few days and put in another strong bar.
Negative action would be undercutting the 50 sma and leaking back towards those lows.
VRT remains strong after the gap
Same with CELH
Group/Themes Action
Not the best days for stocks and growth stocks.
Here’s a Group Performance chart from TraderLion Private Access:
Market Thoughts
I think by the end of the week we will have more clarity. Most growth stocks are still in no mans land and there has been more distribution in the indexes.
Today was an inside day after we were rejected at the 50 sma
No rush and manage risk!
Share Your Market Thoughts
What do you think about this market? What stocks stood out to you today?
Let me know below in the comments. And leave a like!
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Have a great weekend!
Richard
Agreed tape looks weak thanks for the commentary