Tech Midterms Mayhem Likely To Stall For Now

Market Outlook:

With the SPY and DIA resting on their respective 200-dmas, the QQQ and IWM having already breached theirs, the market hangs in the balance.

If the SPY and DIA break their 200-dmas there could be more downside to follow quickly. If they hold, then we’re likely in for bumps around the current levels.

For Monday, I’m happy to pause for breath, but it’s clear the market has now caught onto the narrative of caution about all things AI.

Institutions will be feeling a lot of pain with those positions, so it’s most likely that there will be a scramble to hold them steady around the 200-dma.

Our market commentary continues to be outstanding. Mastering market timing enables you to swim WITH the tide at the right time.

Watch the video for more detail.

Market Timers:

• Longer Term Market Timer (OVIsi):
  Amber.

• Medium Term Swing Timer:
  Bearish, oversold.

• The Main Indices OVIs:
  All red.

Stock Selection:

In conditions like this, it’s always smart to focus on the basics, namely tight setups near Key Levels for continuations, and massively overextended setups for reversals.

It rarely pays trying to be too clever.