The market closed Tuesday still stuck in neutral bullish territory. The indices sit at 58%, the sectors at 54, and the Big 10 basket all the way down at 12, and that spread is the single biggest issue on the board. Financials, healthcare, biotech, and the ARK ETF all look strong, but the names that actually make a good market are leaving a lot to be desired.
Today’s recap covers the two risks of being long what is currently relative strength, especially with Nvidia earnings landing tomorrow night. Either big tech weakness drags everything lower, or cash rotates back into the big boys and pulls the rug on the rotation trade.
The bigger story is the brand new QQQ weekly squeeze. These do not tend to fire the next day, and they do not tend to end in small moves: the basic ATR targets sit near $780 on the upside and $600 on the downside.
The full breakdown, with every chart and level, is in the video below.
Stay Focused,
Taylor Horton
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