Hello Everyone,
New year starts out with increased volatility with SPX/QQQ gapping lower on the open. Today we saw traders take some profits on most of big tech and semiconductors with some money rotating into other sectors such as XLV, XLP and XLU which all gained in excess of one percent. AAPL was downgraded and closed down over 3.5 percent weighing heavily on the QQQ. The market did manage to taper losses late session after putting in 5 waves to the downside. Today's candle shows that intraday bounce that may have some continuation tomorrow - however, the bearish cross on the MACD and Stochastic (14,3) are a concern and to be monitored. As traders return from the Holiday vacation this week we'll see how things unfold but continue to follow your plan. The rising wedges (along with divergences) pointed out last week warned of some type of relief which we saw today.
Please take a moment to look at the trade ideas.
