Negative Market Reversal and Leaders Fall
Powell Speaks Tomorrow
Hi everyone,
I hope you are having a great Thursday!
In this post I’ll concisely share my thoughts on today’s action. Interesting to say the least.
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Now let’s dive in ↓
Market Action
The QQQ had an ugly huge downside reversal and finished near lows. This type of bar typically tells me further short term downside is coming. We are below the MAs.
The IWO also had a negative day
SMH - Another large downside reversal on a pickup in volume
Volume
Volume picked up on the Nasdaq, while it declined a bit on the NYSE.
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Mixed - Below Rising
Short-term - 21 ema - Down - Below Declining
Intermediate term - 50 sma - Down- Below Declining
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Negative action across the board
Here’s a Daily Group Performance chart from TraderLion Private Access:
Key Stocks
NVDA sold off after it’s earnings beat and failed at the 500 level. It remains above the MAs but likely needs more basing.
Watch out for acceleration and cut below the MAs, if that happens it liekly visits the base lows at least.
For positives if it can consolidate close to those base highs it may continue to go sideways until the market correction is over.
Open to any scenario
Chart & Data from Deepvue
UPWK - Gave back much of yesterday’s strong bar
CELH still holding up but some signs of weakness yesterday and today
TSLA - The declining 21ema is still resistance
Market Thoughts
I don’t like gap ups, they can cause wild price moves up or down. Today with NVDA and the market gapping up after an uptrend of 4 straight days we saw a lot of profit taking and selling pressure.
The next few days are important, does selling continue or do we tighten and consolidate?
Powell speaks tomorrow which could further add volatility.
Remain open to any scenario and continue to do your homework. Manage risk always and take it day by day.
What are your thoughts on today’s action? (Leave a comment below)
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Cheers!
Richard
Thank you for the updates!
I always look forward to them :)