Gap Up Above the 50 sma and Fade. Downside Reversals
Richard Moglen
Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue
May 1, 2025
[kt_reading_time]
Market Action
QQQ – Gap up today on earnings but a poor close. We are now above the 50 sma and up against the 200 sma area. What will be key is how we respond after today. Do we build out sideways after some pull in or do we drop hard and break below the 50 sma again.
The expectation based on the close and recent action is sideways for lower. Watching if the gap get’s filled
Bulls want to see us hold or rally after a fill of the gap
Bears want to follow through down and look to break below MAs
Daily Chart of the QQQ.
IWM – Hesitation at the pivot
IBIT – Gap up and hold
Trends (2/4 Up) – Based on the QQQ
Shortest – 10 Day EMA – Above Rising
Short-term – 21 ema – Above Rising
Intermediate term – 50 sma – Above declining
Longterm – 200 sma – Up – Below declining
Groups/Sectors
Deepvue Theme Tracker
Deepvue Leaders Heatmap
S&P 500.
Leaders and Key Moves
TSLA Fade off highs after looking like it was following through, needs to hold here above the 10/21 ema
PLTR downside reversal, likely chops before earnings
NVDA Fade after the gap
META Fade after the gap
HOOD Downside reversal after the gap
CRWD Fade off highs
TGTX Pause day
MSTR Downside reversal
UBER slight fade, tight day
Stocks Setting Up / Showing RS
TTAN Respect for the pivot, watching for it to form a range and reconfirm up. Promising IPO
BABA forming a range here, watching for a breakout
GEV gap up and hold, Key level
TMDX tight at the 10ema
RDDT gapping up but up and down after earnings, good gauge of risk appetite
SPOT Tight day below the level, watching for re-breaking but ideally builds here
BULL tightening for faster traders. Gap and Go or tight range breakout. Could reverse any day
NMAX similar. Trump Theme
Today’s Watchlist in List form
Key Names
NVDA, TSLA, META, PLTR, MSTR, CRWD, GOOG TGTX
TTAN, BABA, GEV, TMDX, RDDT, SPOT, BULL, NMAX
Focus:
RDDT NMAX
Themes and Leaders
Strongest Themes: BTC, Miners, Cyber Software
Market Thoughts & Focus
A bit of a step back today. I think we chop a bit before a lot of earnings next week. See how we act after a potential gap fill
Earnings season will be a good test as well and could provide some great gapper opportunities up the right sides of bases
Anything can happen, Day by Day – Managing risk along the way