| | | FWIW
Larry Tentarelli, Blue Chip Daily
@bluechipdaily
What I'm seeing in the market, on both sides, good and bad - GOOD: - In the last phase of a pullback, markets often clear the decks and take down the leaders - which we started to see on Friday with $SMH $NVDA $SMCI $SPOT $GE $LLY etc. - the thought process is you can't get a full pullback without taking down the last charts standing. - 66% of $SPX stocks were up on Friday, as well as $RSP $DIA and $IWM. $DIA closed green last week. - The $SPX McClellan Oscillator hit the 8th most oversold closing level in 10 years last Tuesday. - $QQQ daily RSI at 29.78 <oversold> often marks a reversal. $SPY daily RSI at 31.21. - Oversold by itself isn't always a buy signal. But it pays to take note of the reversals. ( $SPY 66% upside day Friday) - Financials showed major strength on Friday with sector leaders $AXP $PGR <long> and $WFC breaking out. BAD: - $SPY and $QQQ charts have major downside momentum, both below the 50-sma and the 20-sma has rolled over. - Tech pullbacks look unresolved and as the largest weighted sector are weighing on indices. - Tech earnings have been sold into and earnings season accelerates this week. RECAP: - The correction outside of tech might already be resolved, but tech and the indices still have weak charts. - Curious to see if $RSP and $DIA diverge more from $QQQ this week, as on Friday. - Any *potential reversals this week could be sharp. - I'm not calling a bottom or end of pullback, because there can always be a bounce before another test lower. - I was a net seller last week, and booked net gains, due to profit stops and stop losses being hit. I did not make any buys last week. I don't buy weakness into high-range pullbacks. I could buy strength and breakouts this week. Cash is higher than I'd like it, at 18%. - I'm watching this week to see if $DIA $RSP $XLF $XLE $XLB ++ continue to diverge and if tech can find some footing. - There are quite a few standout charts at or near breakout levels outside of tech, that I shared with our members this weekend. - I'll watch the charts this week and make adjustments, either side, based on what I see. |
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