Chop Starting? – Market Analysis and Stocks to Watch

Market Action

QQQ – 2 Closes now above the 21ema, I like the supportive action off the lows today. We are in the area now of the AVWAP from highs. I wouldnt mind some consolidation here sideways for a few days and then a strogn reconfirmation up.

50 sma is still above.

IWM – Still weaker, notice how it is still in the range and had a worse close

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 (3/4 Up)

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

Groups/Sectors – % Change from Open

Performance Charts from Deepvue

Heatmap from Deepvue

Key Stocks in Deepvue

NVDA decent close, running into 50sma and potential resistance area. Ideally flags out here and bursts through the 50sma

AXON tight

ONON inside day after earnings

RACE Strong breakout. notice RMV tight zone a few days ago, from contraction comes expansion

TMDX tight, likely moves tomorrow

FOUR strong expansion past few sessions, can watch for flags. NU APP similar

SBUX inside day decent closing range after the gap up, Watch HVC or further range building

KVYO some selling today, see if it can rally back stronger or if there is little follow through down

SG double inside days, likely pushes tomorrow

DOCS double inside post gap, likely moves tomorrow

IBIT Building a range last 4 days under the 21ema, see if it can push through the 21ema

Market Thoughts

Some back and fill but also support off lows. After the many days up some chop would be normal and welcomed and would build out charts.

How stocks act on any small pullback, large down day, or chop will be a tell for RS

Day by Day