The Market Survives the Gap Down
Hi everyone,
I hope you are having a great Monday!
In this post I’ll concisely share my thoughts on today’s action.
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Now let’s dive in ↓
Market Action
The QQQ rallied after the gap down, but faltered at the declining 21ema and this looks more like a hesitation bar than a powerful reversal
The IWO is still weaker, closed near lows, and is testing the 200 day
Volume
Volume was lower on both the NYSE and Nasdaq. However Friday was OPEX. The Nasdaq had higher volume than Thursday
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
Growth stocks for the most part acted well. Packaged Software stood out a bit and the same themes I covered this weekend continue to act well. Many Semis had solid days
Here’s a Daily Group Performance chart from TraderLion Private Access:
Key Stocks in Deepvue
NVDA potential reversal bar here, needs to continue up and get back above MAs
TSLA not a great look short term. There is a confluence of support below
DUOL great action and outside day
DKNG nice action off lows
UBER not a great look, watching to see if it forms a range
CYBR forming a pivot
We’ll see how these setups resolve.
Market Thoughts
Decent action off lows but there is still signs of weakness out there. We’ll see how the upside reversals today resolve into the end of the week.
Continue to manage risk and take it day by day.
What are your thoughts on today’s action? (Leave a comment below)
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Cheers!
Richard