As Wall Street returned to work after the three-day Christmas weekend, investors maintained the cautious attitude that has marked most of the past few weeks. The major U.S. equity averages finished the day with a mixed performance.
With tech stocks under pressure, the Nasdaq dropped more than 1%, which caused QQQ to break down the intraday Doji, and make it look very negative on the daily chart. Trading volume promises to remain thin throughout the week. The markets are also likely to lack significant catalysts in the coming days.
From the daily chart, SPX looks better than Qs, which gave a shooter pattern on daily chart. But since its lack of trading volume, even break up or break down can be legit.
Chinese tech stocks were among the patches of strength during the day. Boosted by a further loosening of COVID restrictions, names like Alibaba (
BABA
), JD.com (
JD
), Baidu (
BIDU
), Bilibili (
BILI
) and NetEase (
NTES
) all finished higher. From the daily chart of YINN, the trading volume is significantly getting bigger, and moving along the short-term uptrend pattern, 60ish is somewhere you need to care about but still over 10% of potential room to go.
Therefore, my idea is simple, "Grandma shooter for SPX looks boring, and kinda untradable it might be a good idea to focus on Chinese tech names for next couple trading days".