Is the Higher Low in? Constructive Action & Stocks to Watch

Market Action

QQQ – Expectation breaker given yesterday’s close, a bit of evidence that this higher low could hold. Let’s see if we get follow through.

The weakness is that this has been a very sharp decline and we are still quite a ways below the moving averages

IWM – also forming a range, see which way we resolve

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 (1/4 Up)

Shortest – 10 Day EMA – Down – Below Declining
Short-term – 21 ema – Down – Below Declining
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 undercut and reclaim of the AVWAP from the key low. Today is a potential higher low see if we can follow through

PLTR strong trend day. Estimates revised upwards

UPST inside day after explosive move

AXON gapper following through. EXEL as well

KVYO recent IPO gapping up off bottom of the base

SN Gap up. That Air Fryer trend

TMDX strong action, clear RS

ONON looks good right at the 21ema, base is more developed than most

MELI ideally forms higher low here

META RS from the big cap

FOUR DUOL LLY SHOP CPNG others with strong action post earnings

EXAS HE off the bottom names

Market Thoughts

Constructive action although we are still below the declining MAs. see if today’s lows and the key low from monday hold. Good to see recent gappers holding and even following through.

Day by Day, Make sure to stay up on your homework.