The Indexes have been on a run since last weeks Quadruple Witching. Now we are beginning to see signs of it tiring. As we talked about in previous weeks, once the large option expiration was complete we could see a bottom and that is exactly what has happened. Now we have cleared several major hurdles and it looks like a rest may be in order. Today we saw even the leaders TSLA and AAPL unable to close on the high end of their daily ranges. This shows us that buying is getting tired. We saw the 10 year bond yield rally for the first time in two weeks. Usually this suggests inflows into bonds and out of equities. This coupled with the leading sector, semiconductors, breaking three key support levels in one day. Technically this points to sideways action. There were some bright spots. Energy, metals, and commodities continue to outperform and held the SPY up modestly over the other indexes. Right now its best to wait and see how this unwinds. We had a nice run over the past week and now need the market to confirm that we are going to continue before committing more capital to ideas. The video attached below walks through what happened with GME and AMC today. It points to why this is important for overall health of the market. Key levels and support are on the charts! I have several ideas I want to add but for now I need to see support levels hold on the Indexes. Let’s get to it!
đŸ“ˆLeaders Stalled TodayđŸ“‰
đŸ“ˆLeaders Stalled TodayđŸ“‰
đŸ“ˆLeaders Stalled TodayđŸ“‰
The Indexes have been on a run since last weeks Quadruple Witching. Now we are beginning to see signs of it tiring. As we talked about in previous weeks, once the large option expiration was complete we could see a bottom and that is exactly what has happened. Now we have cleared several major hurdles and it looks like a rest may be in order. Today we saw even the leaders TSLA and AAPL unable to close on the high end of their daily ranges. This shows us that buying is getting tired. We saw the 10 year bond yield rally for the first time in two weeks. Usually this suggests inflows into bonds and out of equities. This coupled with the leading sector, semiconductors, breaking three key support levels in one day. Technically this points to sideways action. There were some bright spots. Energy, metals, and commodities continue to outperform and held the SPY up modestly over the other indexes. Right now its best to wait and see how this unwinds. We had a nice run over the past week and now need the market to confirm that we are going to continue before committing more capital to ideas. The video attached below walks through what happened with GME and AMC today. It points to why this is important for overall health of the market. Key levels and support are on the charts! I have several ideas I want to add but for now I need to see support levels hold on the Indexes. Let’s get to it!