The Market is Rejected at the 50 SMA
These themes are holding up.
Hi everyone,
Let’s dive right into today’s (Wednesday’s) action. We’ll cover the general market and then individual stocks that are standing out.
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The General Market
After a gap up, all the major indexes finished weak.
The QQQ formed an inside day andwas down .58% and the NASDAQ had more net new lows. We remain below the 50 SMA.
The SPY undercut yesterday’s lows and was down .76%. The NYSE also had more net new lows.
The IWM was down .61% and is right at its 50 SMA.
The VIX remains above all its moving averages. It did not make new short-term highs.
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The T2106 is still short-term “oversold.”
Trends (3/4 Down)
Short-term: Down (still below the 5 SMA)
Intermediate-term: Down (below a declining 21 EMA)
Mid-term: Mixed (below 50 SMA but the 50 SMA is increasing)
Long-term: Down (below a declining 200 SMA)
Stocks
Below are some stocks I’m watching to the upside that have been holding up well. Overall Biotech and Solar remain the strongest themes.
AXSM holding the 5 SMA.
TH continuing to build sideways.
CSIQ among other solar names holding up well.
ARRY continues to hold the 21 EMA.
ENPH holding the range. A break below Monday’s low would not be a good look. FSLR also strong!
SHLS - want this to tighten.
TMDX holding up well.
RYTM - tight action, could break either way.
KRTX acting well.
Overall Thoughts
Another negative day as the indexes were rejected at their 50 SMAs. 4 days straight of weakness. Solar and Biotech continue to move sideways as the market pulls back.
The longer-term trends remain downward. Keep watching the leading stocks and the indexes. Be ready for anything!
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Have a great week!
Richard
Excellent: short, meaningful. Especially I like the Trends. It used to be something similar many years ago in TC2000 until the end of 2010 when the great Don Worden got sick (he passed away shortly after that, what a loss for the industry).