The Week Ends with a Red Flag - Negative Expectation breaker

Hi everyone,

I hope you are having a great Friday!

In this post I’ll concisely share my thoughts on the week’s action.

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Now let’s dive in ↓

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Last Week’s Market Action

The week showed promise albeit more chop but ended on a sour note Friday with a close below the 50 sma and 21 ema

We are now in a choppy/potential new downcycle

The QQQ, Nasdaq 100 ETF:

Let's cover each day's action:

• Monday - Gap up Solid close

• Tuesday - Gap down, attempted rally then poor close

• Wednesday - Somewhat of a rally off MAs but weakish close

• Thursday - Gap up and decent close

• Friday - Gap down and continued selling.

The IWO remains weaker and closed near lows and the bottom of its base.

Volume

Volume was higher on Friday for the NYSE & Nasdaq. It was Quad witching

Trends ( Based on QQQ)

Shortest - 5 Day SMA - Down- Below Declining

Short-term - 21 ema - Down - Below Declining

Intermediate term - 50 sma - Mixed - Below Flattening

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Growth stocks and especially semiconductors took at hit today.

Daily Performance chart:

Here’s a Weekly Group Performance chart from TraderLion Private Access:

Here is a sort of the Deepvue Universe list by Weekly % Gain, you can see the themes here:

Key Stocks in Deepvue

NVDA with the breakdown this needs more time

TSLA holding up well

MELI holding the base pivot

ABNB held an inside day but looks a bit fragile

AMR - Coal stocks continue to trend, may be getting extended

Weekly Market Thoughts

Negative Expectation breaker and continued sloppy/distributive action from many stocks.

I’ll have to see after the full weekend routine how much damage has been done and if stocks will need just a bit more time or a lot more time.

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

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Richard