If you are bullish, you should feel good for a couple of reasons. First, the QQQ ETF quickly tested support around the $252 level, and it held. Additionally, the S&P 500 futures tested 3,200 a few times, and it held.
Those were both significant levels and good news for the bulls. In a more fragile market, they would have snapped, and that would have sent in a wave of Algo selling.
The bad news, because there are always two sides to the market, are these facts. First, the NDX now has a clear downtrend on the RSI. It tells me one of two things: the trend in the NDX is either lower or sideways, but not higher. We may also have a double top that formed in the NDX, but it is too close to call at this point.
Second, the uptrend in the SPY is officially broken.
Copper officially closed below its uptrend.
Meanwhile, Apple (AAPL) has fallen below its uptrend for the first time since April 1, and its RSI is at the lowest levels since April 21. I also saw some bearish options betting for Apple.
Yes, the bulls made an excellent stand recently. However, my concern is that damage has already been done, and there wasn’t enough to repair the charts from that damage.
Additionally, with copper falling below its uptrend, it almost confirms that the bullish risk-on momentum trade may have seen its best days. Am I concerned about the health of the rally from this point? I am.
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