Traders Ran from The Nasdaq 100 At the exact same time it started to head south
1- The QQQ saw its largest redemption in over 2 years with $4.2 billion outflow.
2- AI stocks slow as Powell turns into One Super-hawkish Dude!
The selling continued yesterday and the question is, how low will we go from here. SPY was down .51% and I must sit here and laugh because now the bulls are getting mad at me saying “you have gotten too bearish” and that I am trying to make retail miss this rally. If you go back to the end of February when I made the turn and no longer listened to the noise and taught y’all to get back to the fundamentals of Technical Analyses and to only pay attention to what the charts and price movement. I was Really bearish on The Banks after being Short NVDA and people were yelling at me for being too bullish. I learned a long time ago to take quick losses, never get tied to your trades never get emotional, and be ready to adapt quickly because if/when the narrative changes and it always does, just like it did when NVDA And AI started to get real. I corrected that quick and since February we have shown our members over 49.75% compared to the Nasdaq which is up an already unbelievable 29% Year to Date. Everyone one said we were crazy to turn bullish I felt that we were doing it right and it felt good to get back to price action. Bottom line I am here to teach, and it’s key to learn from my mistakes and that’s what I teach. Nobody is perfect but when we let go of the ego, keep our emotions in check than you’ve got 90% of the battle won, and make no mistake this is a battle. The Market Makers Are Trying to Take as Much of Your Money, My Money And Everyone Else’s Money as possible, But I am not going to Allow that To Happen to Our Members.
SPY was down .52% yesterday and we did close just below the 5 EMA and we did gap down and close above support of $436 From Here SPY is either going to bounce off of $436. If SPY continues to sell off the next support
Level is the critical $430 which was the prior resistance. Your critical risk level is $430 and if your bearish you can manage risk from the pivot at $432. So, we either bounce and try to put in a higher high and lower high at the gap fill at $439 and the previous resistance from $441 to $442
Or the other scenario is we slice through $430 then we are likely going a lot lower. Price Action is critical here because this is a Bounce Or Die Situation For SPY
The Nasdaq 100 Triple Q’s were down 1.36% yesterday and we finally got the breakdown below the 5 EMA and we have support in the zone of $366-$360 and similar to SPY there’s a possibility that is our higher low if we are going to higher prices. If we break $355 that’s telling us something else is going on the next Support is at $347, we should get that full blown correction that can take us down to $337 and the gap fill at $333. So please know these scenarios and the key here is whether we can hold $355. If we bounce off of $355 all is well and we still have the bull trend until… we don’t. But if we break $355 look out for that correction that can bring us down to the $330’s. The only way to know how this will play out is to follow the Price Action. I do think we need to go lower and cool down before we continue higher but
The market really does not care what you or I think,
It’s price action that counts.
The Dow was down .3% yesterday and is continuing lower and we did break below Tuesdays low we do still have the bull trend above $336 but that does not mean we can’t go down and test that break-out at $446 before going any higher.
As you can tell all the indices are saying the same thing. We need to cool down a little and could go a little lower before we test critical support. We have bull trends so we are not extremely bearish, but we could flip the switch in a minute if things start to break down.
G., Allan Collins