The Market is Rejected at the 21ema

Hi everyone,

Let’s dive right into today’s (Thursday’s) action. We’ll cover the general market and then individual stocks that are standing out.

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The General Market

After an initial push higher, the QQQ closed near the lows down 0.79% on the day. There were net new lows on the Nasdaq.

The SPY acted similarly, down 1%. There were new net lows on the NYSE.

The IWM was down 0.56% and closed near its open.

The VIX rallied above its 5 sma and remains above its 21 ema

The T2108 remains in the 20s

The McClellan Oscillator is still in the middle of its range

Trends (3/4 Down)

Short-term: Up (Above an increasing 5 sma)

Intermediate-term: Down (below a declining 21 EMA)

Mid-term: Down (Below a declining 50 sma)

Long-term: Down (below a declining 200 SMA)

Overall Thoughts

The market was rejected at the 21 ema and the key level I have been watching. However, in the very short term, the rally is still alive.

The close today was negative and we will have to see if we see continued downside into the end of the week or if we can finally push through.

Biotech continues to stay strong and we saw further downside in solar names.

65-minute chart:

Let’s see how we end the week.

Using Weekly Charts

I’d recommend watching the presentation I just gave about how investors can use weekly charts.

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Have a great week!

-Richard