Death of the FAANGs?
Welcome back to the Rude Awakening for Tuesday, March 9, 2021.
Looking at the futures, I believe we’ll have an interesting day in the marketplace. The S&P is looking to see a 35 point bump this morning.
Why? Because we have been hovering around a tipping point: the 50day MA.
If we can see markets push up above the SPX 50day MA today, that’s a strong bullish sign for future market action.
If we fall below it, it might lead to a freefall.
And, we are starting to get some buy signals in our technicals for the first time in a little while…
We’ll see how this plays out today.
One thing we often talk about at the Rude is how money doesn’t generally leave the marketplace…
(Apart from major crashes) It just moves from one place to another.
And right now, we are seeing…
Tremendous Flow OUT of the Tech Stocks
Yesterday, we saw the Dow push up, the S&P push up…
But the Nasdaq sold off throughout the day.
Going back to the new heatmap tool we have in our trading tool belt, you can see how the tech stocks faltered on the day. So much so, they ended up pulling down the other averages some, as well.
All in all, it led to the Nasdaq closing 300 points down.
Meanwhile, the overall market was pretty darn healthy.
All this activity is leading to an opportunity — if you can believe it — through a buy in the bond market.
Find out all about it and more when you tune in for today’s video…
Have a great rest of your trading day.
We’ll talk to you tomorrow!
Editor, Rude Awakening