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Wow, what day.
During this recent tech selloff, we’ve seen pockets of strength holding the market up, most notably in the financials, oil/energy, and industrials.
This morning, JPM opened up about a buck fifty, then proceeded to give it all back and go red. That was a signal that we were in for a rough day, the theory being that if financials, et al. gave up the ghost, the whole market could drop very fast.
And initially, it did, with the Nasdaq futures off more than 400-points at one point in the morning session. Then, just when it looked the whole market was rolling over, we got a big bounce in tech that kept grinding higher.
There were a few bumps along the way, but you could see the buying coming into tech names, and as impossible as it would have seemed when the Naz was at its nadir, it actually closed green.
As you can see, there are reversal bars on all the indexes. The DJIA is still the strongest, closing just above the 21EMA. Next is the SPX, closing above the 50EMA. The QQQ’s were able to re-capture a significant support level but have the 100EMA right above. The IWM remains the weakest of the bunch.
Today was a study in rotation in real-time with a lot of tech names printing reversal bars on the daily chart. Tomorrow will be important, to see if we get follow-through on those reversals, or if this was just a one-day wonder.
I picked up a handful of tech names in the last hour and plan to sell into strength (at least partials) should we get it.
Okay, let’s get to the charts.
Today’s Featured Charts: ADA, AMD, AMZN, BTC, CCL, COIN, DIS, ETH, FB, HNT, JETS, LCID, MSOS, MU, NCLH, NFLX, NVDA, SMH, SNAP, SQ, TWTR, XLF.
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It should go without saying - but I’ll say it anyway - all opinions expressed in The Lund Loop are my own personal opinions and don’t reflect the views of my employer, any associated entities, or other organizations I’m associated with.
Nothing written, expressed, or implied here should be looked at as investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own diligence.