The SPY gapped down under the 50 day again as we remain stuck inside this massive candle from friday. The market hated what Meta had to say about its financial situation and how much cash they may potentially need to raise. These ai numbers are getting eye watering and investors are rightfully pushing back on the endless optimism. All in all nothing too material, as I said Saturday, tech stocks simply broke down. When you lose a 6 month uptrend on the Nasdaq, weakness is going to persist that is all we are seeing. This market continues to chop everyone up in both directions as we cannot exit this range. The NQ is down over 700 points right now and the vix is up 15%, this is a complete disaster what is happening in the tech trade.
Here is the QQQ chart I posted on the weekend and as you can see below we’re simply just continuing that weakness. I will have the closer look beneath that and you can see the QQQ is below the 100 day now and honestly a move to touch that 200 day wouldn’t shock me here. That is usually where markets bottom or things are getting much worse. There are so many other places to play in the market but everyone wants to be in tech stocks, the issue right now is tech stocks just aren’t where you want to be. The technical damage is immense here and it isn’t going to be an easy fix.
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Here are today’s large cap momentum scans. The rest of the small and mid cap scans can he found in the link below. As you can see below, not alot of tech, a handful of saas names but overall nothing pointing to any big tech charts looking like momentum leaders right now.
My Open Book
Trades I Made Today
