📈 State of the Market

Understand this before you trade this week.

Index Review

Let’s take a look at the key indexes to align ourselves on the pecking order going into the new week.

This will help you determine where you should be focusing your trades.

Starting with the S&P 500, you can see that we are approaching all-time highs on the weekly chart:

We have seen a strong rebound the last three weks from the panic that ensued and are poised to test the highs.

However, when you look at the Nasdaq, this is not the case:

This is a daily chart, but you can see how we have a long way to go from reaching highs and we are struggling with a resistance level.

This should tell you something. Tech is currently underperforming the rest of the stock market.

Keep this in mind as you are trading this week. There are other areas that are outperforming tech, so if you go into the week only trying to trade tech names, you may have a difficult time.

I thought that this was an important callout, as we usually trade tech in the Alpha Chasers Community, but that is not the current market that we are in. Right now we are seeing favorability in interest rate sensitive names.

I will review the top-performing indexes in tomorrow’s newsletter, but for now be cautious when trading tech.