The Market Falls 4% after Powell Speech
What's Next??
Hi everyone,
Let’s dive right into Friday’s action. We’ll cover the general market, and then individual stocks that stood out today.
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The General Market
The QQQ fell 4% on an increase in volume, undercutting the week’s lows. The short-term downtrend continues. Surprisingly, the Nasdaq had net new highs
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The SPY was down 3.3 % also on an increase in volume. The NYSE also had net new highs.
The IWM was also down over 3%, erasing progress made over the past 2 days
The VIX closed above its 50-day sma for the first time in quite a while
Trends (3/4 DOWN)
Short term: Down (Still below the 5 SMA)
Intermediate Term: Down (below a declining 50 sma)
Mid Term: Up (Above a rising 50 sma)
Long-term: Down (Below a declining 200 sma)
Stocks
Not that many stocks showed strength today. I’ll post a more thorough list over the weekend.
ENPH holding the pivot and building a base (Weekly chart)
CELH holding as well for now, not huge volume on that BO
RYTM nice action, more of a swing trade stock
OXY just a bit below the pivot, looks like normal price and volume action
AMR, if it has one inside day then it could form another consolidation pivot
What stocks caught your eye today? Let me know below in the comments.
Overall thoughts
Today was a big step backward. The Fed reaffirmed that they will continue to raise rates. We are currently in a short-term down cycle.
The strongest stock will drift sideways if we see continued market weakness. Focus on those names and be ready to find spots if the market can push upward again in the near term.
Manage risk and exposure and be patient, we are still in a longer-term downtrend.
What do you think of today’s action? Let me know below.
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Have a great week!
Richard
I think you checked the net highs/lows too soon after the close bc my chart is showing a big down bar on that QQQ indicator.
A lot of stocks held up, bond yields held....can't get too bearish until I see some downside follow-through.