The Market Sells Off After the NVDA Gap Up

Richard Moglen
Richard Moglen

Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue

Market Trend Status
Trend: 1 of 4 DOWN
✗ 10 EMA ✗ 21 EMA ✗ 50 SMA ✓ 200 SMA

Market Action

Sharp selloff across the board starting around 11am. Overall downside reversals everywhere. We are in a corrective market

QQQ
Down about 4.5% after the morning gap up.
IWM
Downside reversal. Trending below the MAs
IBIT
Sharp selloff on the highest volume in months.

Trends 1/4 Up – based on the QQQ

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

Groups/Sectors

THEME Tracker
Everything down today off the open. Biotech & Health strongest 1M themes
Deepvue Leaders Heatmap
Red.
S&P
Tech themes hit hard

Leadership Stocks & Analysis

TSLA
After holding up pretty well in the moving, TSLA sold off and closed at lows
AAPL
Downside reversal, looks primed for follow through lower below the recent range
AMZN
Looks to test the 200sma
META
Downside reversal within the downtrend
GOOG
Downside reversal. Strongest RS as it's holding above the 10ema
NVDA
The earnings gap was sold off the open
AMD
looks to test the catalyst gap close
PLTR
Reconfirmation down
INTC
Downside reversal off the 21ema
MU
Reconfirmation down after the fade at highs 3 days ago
VRT
Downside Reversal
BE
Downside reversal
LLY
Trending above the moving averages

Key Moves

RCUS
Biotech the really sole theme acting relatively well today.

Setups and Watchlist

CIFR
Watching for a range breakout down and follow through lower
FLS
Watching for a range breakdown lower.

Watchlist & Themes

Larger Watching

CIFR FLS TSLA NVDA AMD

Daily Focus List (Not planning on trading, for feedback)

CIFR

Additional Thoughts

Many level reversals today (see my article on this) That would have been the best spots to start shorts versus highs. Now tough to manage risk on shorts unless breaking below ranges. My plan is to not do much and build RS lists as this correction continues. Things can shape up faster that you thing so be quick with shorts and ready mentally. Protect your capital, financial and mental, things can still break down a lot further. We are waiting for reversal extensions and higher lows. Likely volatility stays elevated.

Recent Trade Lab Reports

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