Sharp Decline to the 21ema. Stocks Pull back.

Hi everyone,

I hope you are having a great Tuesday!

In this post I’ll concisely share my thoughts on today’s action. And share a bunch of stock charts that caught my eye.

Now let’s dive in ↓

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Market Action

The QQQ followed through down after the failed push higher.

We found support for now at the 21ema

The IWO is pulling back to the short consolidation area after the gap up

Volume

Volume was higher on the NYSE and the Nasdaq.

Trends ( Based on QQQ)

Shortest - 5 Day SMA - Down - Below declining

Short-term - 21 ema - Up - Above Rising

Intermediate term - 50 sma - Up - Above Rising

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Biotech was the main area of strength.

Key Stocks in Deepvue

AMD the key semi, gap down and follow through lower

MRNA one of the strongest names today, up against the 200 day

CRSP also acting well

MSTR gap up but poor close

RUN some decent closes in solar names

CRWD back to the 21 ema

Market Thoughts

Lots of leaders have pulled back sharply and follow through down. Many are near their 21emas and are trying to defend their intermediate term uptrends.

Pumping the brakes here.

Reminder:

Risk Management is Paramount

Refuse to enter randomly without managing risk and wait for the spots to develop, they will. Stocks during strong moves always pull back to the 21 ema, 50 sma multiple times.

Have patience, focus on the best stocks with the greatest potential. These will telegraph the rest of the market.

Take it day by day and manage risk along the way. Be ready for anything

What are your thoughts on today’s action? (Leave a comment below)

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Richard


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