There is a lot to like about this market and one thing that keeps me from getting aggressive. Biotech, healthcare, $XLP, energy and $ARKK are all in great shape. Unfortunately, none of them move the needle much in the $SPY or the $QQQ. The group that does, the $SMH, is second to last on my board at negative 8% of its strongest score, and until that changes I am staying patient.
The number I care about into Friday is $575 in the $SMH. Reclaim it and hold it, and the odds go up that they fire a two day and a three day squeeze long and finally get that bullish MACD shift. Lose it and they are taking out key daily levels and the 50 SMA on the two day time frame, which usually means more downside first.
Full breakdown, chart by chart, in the video below.
Stay Focused,
Taylor Horton
Volume is how you tell whether real money is behind a move or whether it is just drifting, and that is exactly the difference between a breakout worth taking and one worth skipping. In a recent session, Raghee walks through how she reads volume with her Volume Max 2.0 toolkit. If you want confirmation before you chase, spend the hour on this one.