A daily chart update on the 3 main items.
SPX is looking for support at point ‘B’. After that there is a gap (not marked) at the next support area just below the SMA 50. There is another unmarked gap at 5371. If SPX loses the SMA 50, however, I would have caution. Heck, given the structural risk in the markets, I have caution anyway. But as yet, the pullback is normal, as would be a test of the SMA 50.
NDX also has a couple gaps that I have not circled. One at 19103 and another at 18666. If NDX loses current short-term support at the SMA 50 the rally is not indicated over, but again, in a high risk market, I personally will be less tolerant and may do some more selling. As of now it’s a long, bearish engulfing candle sitting heavy on the SMA 50.
SOX is repelled at the underside of its SMA 50 with a gap to fill at 5000. NVDA reports on August 28 and that may be telling for the Semi sector and big Tech as well. The normal script is that they knock it out of the park and the machines and momos chase the market higher. But one of these days might not there be a disappointment relative to lofty expectations? I am thinking I may take at least a partial profit on NVDA. This is where I have to think about what kind of trader I am. I am not a day trader, but with a high risk market that IMO will be followed by a strong bear, I sure am not buy and hold investor either. I did excuse AMZN and its moderate profit from the taxable account.
Just a little perspective for you.
