6/25/26 Recap
The SPY gapped down under the 8 ema for the second straight session and you can see the small downtrend we’re in right now the last 4 sessions with lower highs each day. The Nasdaq is down nearly 900 points and this is what I was talking about 3 days ago saying this is where you get a big red candle out of nowhere.
It looks like we have a date with that 21 ema just below at 743.95 and what we do there will be critical to what happens next. Do we bounce off it and continue this run we’re in or are we flipping to our first move below it in 2 months. That’s not a call you make now but you have to be very mindful that for now we’re still in a bigger uptrend, but that could change very quickly in the next few sessions.
Today’s move down is on a multitude of things, first Korea was down big overnight and that has a ton of our names that have run so hot recently. Secondly, we had a very strong NFP number today. A stronger economy means the likelihood of us having to raise rates and not cut them as planned. We know the President keeps wanting rates cut, made a big fuss about Powell’s refusal to appease his wishes and now he has his pick in at chair. The data is not supporting a cut right now but is Warsh really going to upset the man who handpicked him? The market doesn’t like that uncertainty and is throwing a fit like it always does when uncertainty is present. Bottom line there is no major technical damage for now. These rate fears hit the high growth names that have run the hardest recently hence the bloodbath you see today across the growth spectrum.
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