The Market Continues to Weaken...

Hi everyone,

I hope you are having a great Saturday!

In this post I’ll concisely share my thoughts on the week’s action.

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Now let’s dive in ↓

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Last Week’s Market Action

The week showed promise albeit more chop but ended on a sour note Friday with a close below the 50 sma and 21 ema

We are now in a choppy/potential new downcycle

The QQQ, Nasdaq 100 ETF:

Let's cover each day's action:

• Monday - Small tentative upside reversal off short term level

• Tuesday - Larger upside reversal, still hanging in

• Wednesday - Gap up and rejection, close at lows

• Thursday - gap down and close at lows

• Friday - Attempted rally then close at lows

The IWO remains weaker and closed near lows and the bottom of its base.

Volume

Volume was lower on Friday for the NYSE & Nasdaq.

Trends ( Based on QQQ)

Shortest - 5 Day SMA - Down- Below Declining

Short-term - 21 ema - Down - Below Declining

Intermediate term - 50 sma - Down - Below Declining

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Lot’s of continued distribution

Daily Performance chart:

Here’s a Weekly Group Performance chart from TraderLion Private Access:

Here is a sort of the Deepvue Universe list by Weekly % Gain.Not many clear themes here.

In general Insurance, Bio/Pharma, Steel Metals, Packaged software among the groups still holding up

Key Stocks in Deepvue

TSLA very negative bar Friday

NVDA pulling in towards the bottom of the base

AMZN, failed breakout and distribution signs

GOOG sharp drop to the 50 day

META looks a bit weak

Weekly Market Thoughts

We are 6 days into the current downcycle. A bit short term extended to the downside but what is over sold can easily keeping going down.

I also would not be suprised to see a short term rally that looks to fill the gap down and test the declining MAs. if that happens it could be a good risk/reward area to put on any shorts if that rally fails if that is your style.

Less is more in choppy/corrective markets. Here is what you can do instead during this time:

6 Dead Simple Ways to Benefit From Market Corrections

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

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