The Market Reconfirms the Downcycle
Hi everyone,
I hope you are having a great Wednesday!
In this post I’ll concisely share my thoughts on today’s action and highlight key stocks.
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Now let’s dive in ↓
Market Action
The QQQ dropped over 1.4% after the Fed announcement and closed near lows. We lost the short term level and continue to stay below MAs.
The IWO is still weaker, definitive close below the 200 day
Volume
Volume was lower on the NYSE and higher on the 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
Today we saw distribution pretty much across the board. A few packaged software names stood out.
Here’s a Daily Group Performance chart from TraderLion:
Key Stocks in Deepvue
NVDA still in a downtrend and inside day and down
TSLA Looked promising but finished at lows
DUOL lost the pivot
CYBR a name to keep watching
AMGN good day
CELH Wedge Drop
Market Thoughts
The weakness that we’ve seen was definitive today after the Fed announcement. Managing risk and preserving capital is Job #1.
Keep a list going of stocks showing RS. This homework will serve you well when we get back above the MAs
What are your thoughts on today’s action? (Leave a comment below)
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Cheers!
Richard
Some support for the QQQ at 355 ish, but higher for longer won’t be helpful. And after 355, look out below.