The S&P 500 (/ES) is not matching the bullish criteria: trading under the daily 21 exponential moving average (EMA) with Big 3 sell signals on the 30-min, 15-min, and 5-min charts. We’re seeing the same characteristics with the QQQ below the daily 21 EMA and bearish Big 3 signals.
Taking a look at the sectors, XLK, XLF, SMH also don’t fit the bill.
If the indices and sectors don’t fit the bullish criteria, chances are that many individual stocks also don’t fit the bill.
NVDA flushed on Friday and is printing bearish Big 3 signals on the lower timeframes while trading under the daily 21 EMA and daily 50 simple moving average (SMA). Names like AMZN and GOOGL are showing the same.
Overwhelmingly, based on the structure of the indices, there aren’t many names we’d look to go long right now.
There are a few names, though, that are looking clean, like the energy sector (XLE) for example.
In the video above, we’ll review what conditions we need for stocks to present a buying opportunity. We’ll also define which specific names we’re looking to buy once we’re presented a better entry point.
If you’d like to try Taylor’s Compounding Growth Mastery, we have a 30-day trial available for just $7 here. We hope to see you in the room to receive Taylor’s Big 3 trade alerts, Big 3 scan results and watchlists, and to join in on the weekly live trading sessions.
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