6/26 Recap

What a nasty flush in the megacap names today. Tesla is down 5%, Nvidia is down 4.5% and the darlings of the recent run up are taking it on the chin today. Whether this has to do with Teslas failed livestream demo of FSD last week, who knows, the bigger issue is many of these mega caps are breaking their 8 ema a clear sign of weakness. As of this moment only Apple and Amazon are still holding above, the rest of the big 7 are all breaking below, not a good sign for continued strength.

The SPY itself isn’t down so much as you can see below, it is however making a continuation move off Friday’s close below the 8/10 ema. Nothing out of the ordinary, and the reason these moves take so long to play out is once these moving averages begin to slope down, it takes time for them to flatten out and the market to recover them, that’s why I’ve been saying probably a few weeks of weakness. As you can see below the moving averages gave a perfect rejection level today. We are still in an uptrend, don’t confuse a small move with the bigger picture. Until we break below that white line, which I need to extend in future charts, the bigger uptrend is still not broken.

The QQQ is in the same boat as you can see below, nothing egregious, just some profit taking in the mega caps after quite a run.