The Market Continues to Weaken...
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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 ↓
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:
What are your thoughts on the week’s action? (Leave a comment below)
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Richard
Excellent analysis. I agree on possible pullup and reversal back down. Thanks Richard.