The Market Puts in a Shakeout Bar

Hi everyone,

I hope you are having a great Wednesday! In this post I’ll concisely share my thoughts on today’s action.

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Now let’s dive in ↓

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Market Action

The QQQ shook below the august lows and closed reasonably strong.

We remain below all the moving averages but today could be the start of a short term rally from oversold conditions if the momentum continues.

The longer term trend and downcycle continues, one good day or close does not change that

The IWO forming a short range at a key level

Volume

Volume was higher on both the NYSE and 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

Oil and Gas, Energy were the clear leaders today. However, many growth stocks closed well and pushed off potential (at least short term) lows.

Here’s a Daily Group Performance chart from TraderLion:

Key Stocks in Deepvue

TSLA below MAs but decent reversal today

NVDA wedging a bit off lows. the positive is that it didn’t make a new low when the market did. Does look vulnerable for continuation down.

PLTR nice move higher, on watch to see how this base develops

DUOL forming a range

ESTC still acting well

CAMT great RS

MBLY watching to see if it tightens

Market Thoughts

Todays could hold… or we could break them tomorrow. Some more information is required.

However the routine remains the same. Track RS, potential leaders holding and shaping up so you are ready when the stocks tell you they are ready.

What are your thoughts on today’s action? (Leave a comment below)

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Richard