Positive Expectation Breaker? The Market Fails to Follow through down
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
The QQQ held yesterday’s lows and closed well. Forming a range just above the base lows. We are still below a declining 21 ema
The IWO put in a reversal bar after it was stretched from the MAs intraday. Still negative but potentially the start of a rally if these lows hold.
Volume
Volume was lower on the NYSE and the Nasdaq.
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Up - Above Rising
Short-term - 21 ema - Down - Below Declining
Intermediate term - 50 sma - Down- Below Declining
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Growth names for the most part acted and closed well.
Here’s a Daily Group Performance chart from TraderLion:
Key Stocks in Deepvue
TSLA the tell was a tight day holding Monday’s lows. Great action through the MAs and consolidation pivot. This is the liquid leader
NVDA holding up okay but weaker
DUOL holding the rising 21ema, keep an eye on this one. ideally it tightens more
RIVN positive expectation breaker and back above the 21
MBLY great bar, ideally tightens
COUR another IPO to watch tightening near the 21 ema
PDD acting well. Chinese name
Market Thoughts
Constructive action and a positive expectation breaker. We were getting a bit stretched on the IWO.
Still things need to shape up but encouraged by TSLA’s action.
Do we get the wedge pop on the QQQ? Or do we rollover and need more time?
What are your thoughts on today’s action? (Leave a comment below)
We just published an interview with Mark Minervini focused on finding leaders during corrections. Very time relevant.
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Cheers!
Richard
Terrific Interview. Timely, Relevant, and Gems that Mark Shared as Richard as usual asked penetrating questions.
As always, well said. Maybe it is time to do a class on reversal actions. I’m sure TSLA,SMCI , NVDA, etc can bounce 5-15%. I’m thinking of what the catalyst might be— a peak in rates.? TLT/ TMF ARE very o/s( stretched). I could easily see TMF bounce from $4-ish to $8-9 while NVDA GOES TO $500. What are signs of a reversal from oversold extremes? Again, TY for your insights and hard work