CAVA SG Break Out – Small Caps Rally after Powell gives Clarity

Market Action

QQQ – Inside day, holding the 50 day and key level confluence. New highs increase and breadth

IWM – downside reversal but holding lows for now

Market Corrections Case Studies

Most of you have probably already read through these but I will include them daily until we resolve the correction

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Here are the two case studies of 2018 and 2020 that provide examples of what you can expect form a correction just in case you haven’t seen them yet.

I’ve been taking a look at recent sharp corrections. Here is the 2024 Correction so far compared to the 2020 Correction. Patience (while still prepping for the uptrend) until test/reclaim moving averages from below + form a higher low. If active, tight leashes on trades

QQQ 2024 versus 2020 Case Study – All corrections exhibit similar type action.

Here is the current 2024 Correction versus the 2018 Correction. Notice in that one there were similar points where it looked to be over, only for the rally to fail at key MAs. We’ll see how this current one ultimately resolves. The low could be in, one day at a time.

QQQ 2024 versus 2018 Case Study – Patience is required during corrections, taking it day by until the market proves itself.

Also key is how potential leaders are acting. As the correction ends they will be all setting up and breaking out through pivots.

Look for group action, big gap ups, volume surges, Higher lows as the market makes lower ones, reclaims of moving averages

Avoiding the chop and frustration is key during corrections. Experienced traders can look to pick spots, daytrade or see if levels holds during the day to hold through the close but less is more until the wind is back at our back.

With all that said you should be getting excited. We’ve had some great opportunities in 2023 and 2024 and this correction is setting up another one. The longer this goes on and the deeper the correction, the greater the potential for another uptrend that could change your year and life. You just have to do your homework and be ready mentally when that happens.

Trends (4/4 Up)

Shortest – 10 Day EMA – Up – Above Rising
Short-term – 21 ema – Up – Above Rising
Intermediate term – 50 sma – Above Rising
Longterm – 200 sma – Up – Above Rising

Groups/Sectors – % Change from Open

Performance Charts from Deepvue

Heatmap from Deepvue

Key Stocks in Deepvue

NVDA positive expectation breaker and inside day, setting up a topside pivot before earnings next week

CAVA strong earnings move on HVE. This is a model book stock and could just be getting started

MSTR, Crypto names on the move off low cheats

SG strong move since the 10ema retest.

WING as well pushing

KVYO outside day and breakout

UBER outside day at the key level

NRG forming a handle. Strong Uptrend

ASPN same space as NRG faster move flagging

FOUR push today, still in the flag

DOCS disappointing it didn’t push out today. tight closes needs to get moving

SN upside reversal see if t can follow through

PLTR flagging into the 10ema area

TGTX flagging post breakout, see if we get it to reconfirm

IBIT strong breakout through the MAs from the tight area

TSLA positive expectation breaker and inside day.

Market Thoughts

Very constructive day! We got clarity from powell and stocks responded. Small caps excelled and growth names acted very well. QQQ tight above the 50 sma.

Day by Day – Managing risk along the way