“As Newton says an object or in this case “A Market at rest stays at rest but more Importantly An object
in Motion Stays In Motion. The Downside momentum is starting to gain steam and there is not a ton of support below the NASDAQ. The NASDQ broke our proprietary Uptrend/Downtrend momentum line as I mentioned last week, Insiders Are Selling, The Big Boys and Institutions have been selling and We have a head and shoulders Top pattern that most technicians have not even acknowledged because they cant
leave their Bullish Bias’s by the door.
K.I.S.S.: Keep it simple stupid. The NASDAQ Triple QQQ’s broke the 50 Day Moving Average last Thursday and Institutions began selling. Sell First ask questions later is a good moto tto live by these days. We went short TSLA at $299, NVDA at $480 and UPST At $61 and we are just getting started.
Bulls are still buying the dip and getting hammered. I mentioned last week that this is not a dip to buy. There are major structural changes occurring so if you are still long you should reconsider your trading strategy at this point.
The NASDAQ leads the SPY so SPY should break its 50 Day moving average shortly. The bulls have support sat the 50 day which is at $442.36, $434 and there is not a lot of support until er get to the $420’s.
QQQ Support is at $366, $353 and after that we go a lot lower.
Happy Trading. The Trend Is you friend until the End!! I have determined the New Bear Trend was upon us a few weeks ago and I expect we will continue towards the lows.
G. Allan Collins