The Market Declines Further – 3 Sharp Days Down
Richard Moglen
Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue
February 25, 2025
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Market Action
QQQ – Follow through down and we are now down sharply 3 days in a row. We have a subtle undercut of the Deepseek Gap down and slight bounce. Odds are increasing of a reversal up. However was looks “oversold” can get a lot oversold-er.
Short term expectation based on recent action is consolidation or follow through down
Bulls want to see us quickly rally with a positive expectation breaker. Or a significant gap down with a very strong close
Bears want to see us follow through lower breaking the base lows and the base pivot level set in July of 2024
IWM – some more follow through lower, okay close off the lows, undercutting the prior low in January
IBIT- Gap lower but a close off of the lows
Bulls want to see us follow through higher strongly tomorrow
Bears want to see us to bounce weakly or follow through down
Trends (1/4 Up) – Based on the QQQ
Shortest – 10 Day EMA – Below declining
Short-term – 21 ema – Below declining
Intermediate term – 50 sma – Below declining
Longterm – 200 sma – Up – Below declining
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Groups/Sectors
Performance Today from open on the Left, Performance over the past 20 days on the right.
% Change from the low
Performance Charts from Deepvue
Deepvue Leaders Heatmap
S&P 500
Heatmap from Deepvue
Group Ranks: 1 Day, 1 Week, 1 Month, 3 Month from left to right. This is now a preset for Deepvue Members
Post Market Action. SMCI gap up
Leaders and Key Moves
NVDA At the 200 sma now. Earnings tomorrow could set the tone for the entire market
TSLA Break lower
META Some bounce up off the 50sma and prior consolidation high
RDDT forming a range here against the base lows, watching for a push higher through highs
PLTR testing the 50sma
CRWD decent close off lows, testing the base pivot
BROS Inside day above the 21ema
HIMS sharp break lower but close off the lows, will need a whole new base
Stocks Setting Up / Showing RS
INOD acting well, holding above the 10ema
CWAN holding this range for now
SOLV strong breakout. Recent IPO
RGEN holding this range
ZIM still acting well
AMGN and Biotech still acting well. GILD trending, PTCT
EXEL holding near the pivot
SEI backtesting the pivot on declining volume
GRMN pulling back into the base pivot
LLY acting well. NVO holding above the 50sma
AEM and miners still look good
EXPE a big of wedging action past 2 days but holding above the pivot ad 21 ema
DOCS inside day
NVO holding above the pivot
Themes and Leaders
Strongest Themes: Biotech Insurance Miners
Market Thoughts & Focus
Another down day but with some fight off of the lows. See the potential for a sharp up move in the next couple sessions. Some catalysts for big swings up or down with NVDA.
We are in a downcycle, need to see a show of strength and setups to develop. Currently just tracking RS.
Anything can happen, Day by Day – Managing risk along the way