This week sectors such as industrials, financials, and transports have started to fire squeezes to the downside, which is putting pressure on the SPY exchange traded fund (ETF) and could lead to a move lower.
Over the next few weeks, we’ll be looking for a pullback to the weekly 21 exponential moving average (EMA) for the QQQ and SPY. Now is a good time to consider hedging your long positions, and scaling down in position sizing should you open new longs.
Stay Focused!