The most followed indexes – QQQ, SPY, and IWM are above their 10, 20, and 50-day moving averages; In other words, in a clear uptrend. Six stocks account for more than 50% of the Nasdaq 100 and 23% of the S&P 500 – AAPL, FB, AMZN, GOOGL, MSFT, TSLA. All of them are looking constructively.
In the meantime, many momentum leaders have been under pressure. Biotech is among the worst-performing sectors for the past month. XBI is looking vulnerable to further downside pressure. If XBI loses 107.50, it might test 110. Most software stocks didn’t have a great earnings season. We saw quite a few selloffs and the usual bounces have not been very convincing: AYX, CRWD, BILL, TWLO, etc. There are more bearish setups but most of those setups have been failing and reversing higher.
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Disclaimer: Everything I share is for educational and informational purposes only and it should not be considered financial advice.