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The market peaked on Wednesday, again.

www.trading-adventures.com

The market peaked on Wednesday, again.

Andrew Moss, CMT
Feb 12, 2022
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The market peaked on Wednesday, again.

www.trading-adventures.com

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.

Twitter avatar for @the_chart_life
Ian McMillan, CMT @the_chart_life
All 3 averages are still below important intermediate-term behavioral levels. Still not fixed... $SPX $NDX $RUT
Image
Twitter avatar for @the_chart_life
Ian McMillan, CMT @the_chart_life
Nothing has been fixed yet, although the S&P 500 did get close. Just couldn't hold it. Maybe we will get another run this week. $SPX $NDX $RUT https://t.co/lWykwFUmjE https://t.co/TmnhWq1KoJ
8:54 PM ∙ Feb 11, 2022
60Likes16Retweets
Twitter avatar for @hmeisler
Helene Meisler @hmeisler
IWM. That rally to resistance is like it came out of a textbook.
Image
11:33 AM ∙ Feb 12, 2022
99Likes10Retweets
Twitter avatar for @hmeisler
Helene Meisler @hmeisler
QQQJ. The troops. Still 8% off the lows
Image
11:33 AM ∙ Feb 12, 2022
47Likes5Retweets
Twitter avatar for @hmeisler
Helene Meisler @hmeisler
Bank Index. Rates to new highs and Banks did not follow.
Image
11:33 AM ∙ Feb 12, 2022
75Likes13Retweets
Twitter avatar for @Jake__Wujastyk
Jake Wujastyk @Jake__Wujastyk
$SPY #SPY There she goes
Image
6:44 PM ∙ Feb 11, 2022
341Likes41Retweets
Twitter avatar for @LoneStockTrader
Lone Stock Trader - I never DM first @LoneStockTrader
Big Picture. Still in play:Russell 2000, weekly, inverted Let's where we close tomorrow.
Image
1:19 AM ∙ Feb 11, 2022

And now, some potentially good news. 

Twitter avatar for @RyanDetrick
Ryan Detrick, CMT @RyanDetrick
Given today's Russia/Ukraine news, here's what stocks have done during previous major geopolitical events. Can't minimize these tragic events, but stocks have a funny way of moving past them quickly.
Image
7:28 PM ∙ Feb 11, 2022
497Likes170Retweets

Magazine covers have an impeccable track record. 

Twitter avatar for @topstockcharts
Matt 🦊, CMT @topstockcharts
Hear me out. What if, instead of markets crashing or ripping, markets just, you know, chopped sideways?
Twitter avatar for @TheEconomist
The Economist @TheEconomist
The financial system is in better shape than it was in 2008. But make no mistake: it faces a stern test. Our cover this week https://t.co/erceNK3uVm https://t.co/rd9fFXgrxL
1:22 AM ∙ Feb 11, 2022
Twitter avatar for @allstarcharts
J.C. Parets @allstarcharts
👀
Twitter avatar for @TheEconomist
The Economist @TheEconomist
The financial system is in better shape than it was in 2008. But make no mistake: it faces a stern test. Our cover this week https://t.co/erceNK3uVm https://t.co/rd9fFXgrxL
12:56 AM ∙ Feb 11, 2022
71Likes6Retweets

https://allstarcharts.com/when-the-ride-ends/

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?

Thanks for reading. If you liked this post from Trading Adventures, please leave a comment or share it with a friend?

You can also find me at these links:

www.twitter.com/Andy__Moss

https://typeshare.co/andymoss

https://medium.com/@Andy__Moss

www.linkedin.com/in/andrewcmoss

***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.

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The market peaked on Wednesday, again.

www.trading-adventures.com
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