U.S. stocks on Tuesday slumped amid broad risk off sentiment, with traders dumping megacap technology companies and stocks in heavyweight sectors like communication services. The stock market retreat continued this session, carrying over Monday's downside momentum.Tuesday's sell-off saw the S&P 500 get rejected at the 4,000 level and give back all the post-Powell speech gains. Concerns about a slowdown in the global economy, along with the market's technical deterioration, were the main driving factors for the continued pullback in equities. From the tech side, as what we expected, the market is unlikely to hold up Monday's close, but a little bit worse than what we thought. As we mentioned yesterday, we hope the market can hold up to 3,950ish level, instead,the market breaks to 3,930ish level and pulls back close around 3950 with light extension for 5 mins.
(Link to yesterday's idea) Relatively quiet day
In today's pre-market trading all US indexes are moving upwards.
Since the market is still holding up the trend line support, therefore, I am expecting that the market holds above yesterday's low and the best scenario is SPX close above 4,000 level, which will give us an energy bar daily and more room to play with in next couple trading days.
Talk about set ups, yesterday was not bad.
HON
short, and another short I took
GS
both gave me reasonable returns. For today, I will look at
NIO
,
TGT
,
COST
,
TMUS
.
It is quite clear to see through its daily and 15 mins charts, NIO is holding up this 12.5ish level very well, and it is likely that NIO is waiting for "time correction" daily, after 8&21 EMAs catching up NIO will likely keep moving up. If you interested in this
NIO
idea and would like to find out more, you can see my previous post. (Link to NIO idea) Time To Buy NIO
Please feel free to express your ideas and thoughts in the comment section.