The market peaked on Wednesday, again.
There's everything and nothing to say about the markets this week.
SPY made a very short-term peak on Wednesday, February 2nd, Groundhog Day. Then it sold off.
Then it did the same thing the following Wednesday. Is Punxsutawney Phil up to something?
This time the selloff was deeper and it closed near the lows of the day on Friday. Not a great look going into the weekend.
We could examine inflation, the Fed, interest rates, Russia, and about a gazillion other things. Or we could focus on the charts.
$SPY broke the low of the recent breakout candle and closed below the 8/21/50/200 day moving averages. Not bullish.
$QQQ did the same and closed below the 8/21/50/200 day moving averages. Looks like a trip back to $338 is likely. Not bullish.
$IWM tested the bottom of the channel, got rejected, and closed below the 8/21/50/200 day moving averages. Not bullish.
Now, in a blatant display of confirmation bias, here are several other traders and/or analysts pointing out similar data, and probably doing it better than I have.
And now, some potentially good news.
Magazine covers have an impeccable track record.
I'm not saying it's time to panic. There is a constant stream of top callers and perma-bears pointing out risks to the market. I'm not trying to be either of those things. My time frame and objectives are almost certainly not the same as yours. Make sure you focus on yours.
I see the market through my own lens, as we all do. It's up to you to decide if what I share is useful or not. If you agree with what I'm seeing, ok. If you disagree, that's fine too. At least now you've further considered "the other side of the trade." That's something we should always do.
So leave a comment and let me know what you see?
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***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.