Could we have hit the top??
The S&P failed to match its ATH around the $394 with the resent rally yesterday into this morning. That rally fizzled out quickly as we dipped back below the 10 day EMA to once again revisit the 25 day EMA. This time we have managed to close below the 25 day EMA after Tuesdays bounce away from the 50 and closing above the 25.
We have not seen a failure to post an ATH for months now, and this week we have broken that trend. We made it close to the ATH but got rejected from the 392 area today.
We are now positioned between the 25 and 50 day EMA's with momentum building to the downside. Everyone in the back of their mind knows this market is wayyyyyyy over extended, and this might just be the turning point. If we keep breaking these averages, we will have a lot of room to run to the downside.
What makes this a bit more plausible it the fact that a lot of the giants that have had resilience in this COVID world are now tiring out.
GOOGL has the least telling bearish signal out of most of the FAANG stocks. It is bouncing off of the 25 day EMA for the second time most recently today.
NFLX has bounced once off of the 100 and seems to be stalling out just above the 25. This could head back down to eventually break through if this momentum builds.
AAPL just recently broke the 100
Even with the news of a one shot vaccine getting approved, JNJ seems to be shrugging it off. JNJ has bounced off of the 50 and is hitting its head off of the 25 at this moment.
On to the ones that are showing some BIG red flags at the moment.
Amazingly, AMZN is feeling the heat at the moment. It is bracing for impact on that 200 Day EMA. This is no doubt going to at least bounce off of this area, but the key will be wether or not it will return quickly to it.
One that should be watched closely is FB. It has tested the 200 once already, has had lower and lower rallies for months, and is at the 200 day once again.
ROL is open season for the bears if this holds. It has successfully broken the 200 Day Ema and has room to run.
All in all, this seems to be a much more severe case of the dips that could develop into a full blown case of the drops. I am not saying things can't turn around. Very much the contrary. We have some heavy hitting support zones to break, but what makes this dip different are the stocks breaking through some of those heavy hitting supports have not been seen even close to them since April.
We have not seen a failure to post an ATH for months now, and this week we have broken that trend. We made it close to the ATH but got rejected from the 392 area today.
We are now positioned between the 25 and 50 day EMA's with momentum building to the downside. Everyone in the back of their mind knows this market is wayyyyyyy over extended, and this might just be the turning point. If we keep breaking these averages, we will have a lot of room to run to the downside.
What makes this a bit more plausible it the fact that a lot of the giants that have had resilience in this COVID world are now tiring out.
GOOGL has the least telling bearish signal out of most of the FAANG stocks. It is bouncing off of the 25 day EMA for the second time most recently today.
NFLX has bounced once off of the 100 and seems to be stalling out just above the 25. This could head back down to eventually break through if this momentum builds.
AAPL just recently broke the 100
Even with the news of a one shot vaccine getting approved, JNJ seems to be shrugging it off. JNJ has bounced off of the 50 and is hitting its head off of the 25 at this moment.
On to the ones that are showing some BIG red flags at the moment.
Amazingly, AMZN is feeling the heat at the moment. It is bracing for impact on that 200 Day EMA. This is no doubt going to at least bounce off of this area, but the key will be wether or not it will return quickly to it.
One that should be watched closely is FB. It has tested the 200 once already, has had lower and lower rallies for months, and is at the 200 day once again.
ROL is open season for the bears if this holds. It has successfully broken the 200 Day Ema and has room to run.
All in all, this seems to be a much more severe case of the dips that could develop into a full blown case of the drops. I am not saying things can't turn around. Very much the contrary. We have some heavy hitting support zones to break, but what makes this dip different are the stocks breaking through some of those heavy hitting supports have not been seen even close to them since April.
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