The Nasdaq Down Nearly 3% – Warning Sign?

Market Action

QQQ – gapped lower on chip news catalyst and closed near lows down almost 3%. It is the first close below the 21 ema since the rally started May 3.

I don’t like the look of the gap and go. Unless we can bounce and hold here, likely a test of the 50 sma is in order

IWM – Small caps had a bad close but holding up much better. Still short term extended and room to pullback

Trends (2/4 Up)

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

Groups/Sectors % Change from Open

Performance Charts from Deepvue

Heatmap from Deepvue

Semis hit hard

Key Stocks in Deepvue

NVDA gap down and push lower, see if it can hold near the 50sma. Many semis hit hard

CAVA bear flag breakdown

LNTH holding up well still. Great day to look for RS. Green on the day, inside bars

TSLA holding the 10ema

ONON – Strength on Down days preset from Oliver Kell good one to run

Market Thoughts

Many leaders took big hits today. Wedge drops in Semis. See now if we can hold and build or if we get continued pullback. IWM still looks strong but short term extended.

Day by Day, monitor positions and for RS.