Hello Everyone,
The market has had a nice correction this week and two back to back strong moves lower. For today the SPX and Nasdaq lost -0.7%, while the Russell lost -1%. For the week the SPX is down -1.8%, Nasdaq - 1.4%.
On the weekend I warned about the negative breadth in the market and the fact that HYG corporate bonds were not confirming the move higher in the SPX; and this week we've seen a nice pullback so far.
That said, talking about only a handful of stocks holding/leading the market higher, after hrs we see that effect as NVDA reported earnings in after hrs and is currently up strongly in the after hrs market - currently up 25%!!! As a result market futures are up strongly here in after hrs with the ES (S&P) futures up 27 points, while the NQ (Nasdaq 100) futures up 220 points!
The question now is: Did that complete the pullback in the market? Remember we have been favoring a pullback that forms a higher low and then rallies again to another high. Or was that wave A down, and we'll now see a wave B bounce that forms a lower higher, followed by a final C wave lower to complete? Tomorrow I'll be watching the Fib retracements to see if the indexes are going to form a lower high or if the correction is already complete. If price goes much above the 61.8% Fibs, then likely the correction is done.
In the mean time we've had some great trade ideas - make sure you are trying to play some of them
KISS Google Spreadsheet Table
KISS STS Tables for Indexes, ETF's, Stocks - check your stocks and ETF's to see where they are suggesting smart trailing stops if long.
have a great night
Matt
