Good Action off the Gap Down – Ready for a Rally?
Richard Moglen
Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue
March 21, 2025
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Market Action
QQQ – Strong action after the gap down. Today’s low is now a potential higher low. We closed right at the declining 10ema, below the rest of the MAs.
The short term expectation based on today’s close and recent action is consolidation or higher. Continuing to expect volatility. The QQQ is primed for higher. Wether it does or not will be telling.
Bulls want to see us follow through strongly early next week and breka above the 10ema and the highs of this range.
Bears want to see us reverse lower and take out today’s low.
Daily Chart of the QQQ:
IWM – not as strong a bar today, below the MAs
IBIT- Very tight day on low volume at the pivot. Expecting it to get directional soon
Trends (0/4 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 Increasing
Groups/Sectors
Performance Today from open on the Left, Performance over the past 20 days on the right.
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 a preset for Deepvue Members
Leaders and Key Moves
Important Note: Many of these “leaders” are leading to the downside. Still they provide a good gauge of market environment. As new leaders reveal themselves I will curate this list.
NVDA Make or break now. In this range just below the 21ema.
TSLA Strong action from the tight day, still in this short range, back above the 10ema
META held as it needed too here. Still below the MAs
RDDT good action off the key levels, needs to follow through
PLTR Strong action, outside day and pushing through the 21ema and the range highs
OKTA Upside reversal. Forming a tight range here, watching for a push higher
MSTR tight range above the 21ema, just below the 50 sma
ROOT Positive outside day
BABA Additional gap down, needs to firm up
TGTX good action, trending above the MAs
Stocks Setting Up / Showing RS
5 Day Slope % Change in Deepvue has been my new favorite way of spotting stocks showing Relative Strength.
Now that this rally is about 5 days old I also like to use Price % Change 5 Days to see what has bounced the hardest.
As mentioned before 1 day of positive action is not enough, we want to look for persistent relative strength and stocks that are forming sound bases in new leading themes.
AEM upside reversal off the 10ema in this short flag
CRK watching for a push from this tight day
DOCS upside reversal, watching for a push higher from this range
PAAS Upside reversal in this flag
VRNA strong trend
PTGX upside reversal, watching for follow through
AXSM watching for range breakout
MP want to see it follow through higher
SWTX in a tight range, watching for a break higher
HIMS watching for a push off the rounded base bottom
GH watching for follow through higher
AHR watching for a base breakout
RBRK leak below the range here but still one to watch
Watchlist in List form
Potential Leaders + Mega Caps ( Overall leading to the downside for now)
NVDA, TSLA, META, RDDT, PLTR, OKTA, MSTR, ROOT, BABA, TGTX
Stock on Watch
AEM, CRK, DOCS, PAAS, VRNA, PTGX, AXSM, MP, SWTX, HIMS, GH, AHR, RBRK, OKTA
Themes and Leaders
Strongest Themes: China, Biotech/Pharma, Insurance, Miners, Health Care Equipment, Oil & Gas
Market Thoughts & Focus
Nice action off the gap down open from growth names, constructive. Set up for a rally up next week. What will be key is if we see follow through. A lot of names have been forming 2 week ranges, do these turn out to be base bottoms or bear flags? We’ll let the market tell us.
Anything can happen, Day by Day – Managing risk along the way