Market breadth is weakening as momentum cools.
$SPX participation is rolling over, while $SMH points to a healthy consolidation phase. At the same time, $TSLA sits at key long-term support and $PLTR shows a potential bullish reversal signal.
The market may be shifting from trend to consolidation, with selective setups emerging.
1. $S&P 500(.SPX)$
The percentage of stocks above their 20DMA has reversed from 70%, usually a consolidation follows; this time potentially below the 50DMA.
The market was driven by strength in Tech and Materials, overall participation was negative.
2. $VanEck Semiconductor ETF(SMH)$
Two weeks ago I posted in my publication that semiconductors would outperform the market at the bounce, that has been the case.
Today SMH suggests a normal/healthy consolidation is ahead. 20DMA?
3. $Tesla Motors(TSLA)$
Bounce Ahead? Money Flow is at historical lows on the weekly, and the price is sitting at the 100 week moving average which has supported the trend since August 2024.
4. $Palantir Technologies Inc.(PLTR)$
Dragonfly candle below the lower Bollinger band. Be careful being too bearish here, this setup is usually bullish.
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