The S&P had an inside day yesterday, closing the day a little bit off the highs. The low of yesterday was below Friday’s low, signifying a possible move to the downside. The fact that the stock closed below the 8 day there is a high probability we’ll see it go towards the 21 day, or lower (434.88). The earnings season showed positive results for the majority of the stocks that are part of this ETF, but the Bipartisan Bill talks coupled with the aggressive Delta variant pose a risk for a down move.
We can see a similar trend in the QQQs – an inside day, it touched the 8 day 364.65, and it closed below it. Monday showed the QQQs to be stronger than Friday, but an abrupt negative close on Monday puts investors on their toes. All earnings were strong, but the stocks did not reflect it. The signal is for a downward corrective move, which can take us all the way to the 21 day – 361.05 or lower.
TSLA had a monster move to the upside in the past 3 sessions, but it closed quite weak on Monday. The idea is for TSLA to hold the gap above 698 and rebuild from there. Today we want to see a strong consolidation above 700 in order to prepare it for a leg higher, to 753 and above. If it goes und 698 and it does not reclaim it, it could see the 8 day, which is all the way down to 673.52.
AMD has been the rockstar last week and on monday, making a new all time high of 110.33. The moment AMD managed to come out of the year long channel and it consolidated above 99.23 it just sky-rocketed. It is very extended from the moving averages, so a consolidation period is to be expected in this stock. We want to see it stay above the channel, otherwise it will go down fast, and lose its active sequence. The 8 day is all the way down to 99.63, at the top of the long channel.