The Market is Correcting - Here's what to watch for now!
Hi everyone,
I hope you are having a great weekend!
In this post I’ll concisely share my thoughts on the market health and leading groups.
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Now let’s dive in ↓
Market Action
The QQQ remains below a declining 21 ema
We attempted to rally a few time but were rejected. We are just below the 50 sma and have been basing now for a few weeks.
The IWO has fallen sharply and is below a declining 21 ema.
SMH - The semiconductors were the leading group, they remain in a down cycle.
Key Stocks
NVDA Is now below the 21 and 50 sma. It’s approaching a key level, below that it would challenge the gap HVC and gap lows. It’s in a downcycle.
A positive would be a large undercut and rally bar, then progression back up to the moving averages.
PLTR is also in a downcycle, not acting well after earnings
CELH - there are a few names acting well, this gapped up after a 100% EPS surprise. It’s a later stage gap.
LLY another recent gap up acting well. AMGN also.
Trends ( Based on QQQ)
Shortest - 5 Day SMA - Down - Below declining
Short-term - 21 ema - Down - Below declining
Intermediate term - 50 sma - Mixed- Below Rising
Longterm - 200 sma - Up - Above Rising
Group/Themes Action
Looking through my screens I noticed:
Semi conductors in downcycles
Banks still acting well
Bio/Pharmas acting well
Wide List via Deepvue
These are stocks that caught my eye from the Deepvue Universe Screen, Liquid Strength Screen, Power 21 Screen, and IPOs. Not all are completely ready.
AMGN APP ARRY AZEK BKNG BROS CAT CELH CFLT CLS DBX DPZ DWAC ELF ETN FLS FLT FRPT FRSH FSLY FTAI GEN GTLB IONQ LLY MAT MNDY MSCI ODFL ONB REGN RPD RPM SAIA TOST TSLA TW TXT UPWK VRT WAL
Market Thoughts
Last week more leaders declined sharply. We’ve been correcting/basing for a few weeks now. Watch out for either continuations downwards or the start of ranges if stocks build sideways.
On a gap down if we see strong upside reversals across the board that could be the start of the bottoms of bases.
The leading stocks will tell us if more time is needed.
Be ready for anything and manage risk!
Share Your Market Thoughts
What do you think about this market? What stocks are you watching?
Let me know below in the comments. And leave a like!
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Have a great weekend!
Richard
Hey Richard; Note many key important stocks testing critical support. If it breaks, look out below.
Also, rates and dollar will seriously pressure equities should they continue uptrends. Op Ex week will add to any break lower (which is overdue). With the massive treasury issuance a big rate spike higher is very possible, which could trigger a panic equities sell off. Note that the AI bubble looks to be breaking (NVDA/MSFT/APPL/AMD/SMH). Weak VIX at support. Failed rallies/gap ups ominous for bulls. Critical week will determine next trend move. Been all bulls for too long. My bet is for equities down. (hard)