A Healthy Pullback
The Nasdaq finally took a breather after moving up 8 weeks in a row, as some consolidation or a shakeout is likely needed. Before we keep going make sure you are subscribed so that you don’t miss any future updates!
The holiday shortened week brought a mild pullback as historically, the Nasdaq had become extended from the 50-day moving average. Some other signals like the one pointed out by my latest indicator for TradingView also signaled a pullback was likely. Get it here. You can learn more about that signal by watching John Pocorobba’s General Market Update from 6/16.
While the pullback was welcome and so far mild, the return of net new lows on Thursday and Friday is not ideal. It is, however, only two days and the net lows don’t seem to be from stocks breaking down, but rather just less stocks making new highs. Many leaders seem to be holding up just fine.
Market Navigator
The Market Navigator remains in a Power Trend with an exposure count of 7, however we are starting to see more distribution days with the count now up to 4.
Leading Stocks
HUBS 0.00%↑ pulled back on light volume this week as it completes its 4th tight weekly close. I’ll be watching for a first touch of the 10 week moving average after moving higher from it’s March base. This could also form a new flat base.
MDB 0.00%↑ has formed a high tight flag with the three weeks tight after a Monster PEG on earnings.  After running up over 85%, MDB has only pulled back 8% showing a real lack of sellers.
TSLA 0.00%↑ closed with a tight weekly close on lighter volume as it digests its recent powerful advance. This has now completed 4 weeks of William O’Neil’s 8 week hold rule, and I will be watching if it comes down to fill the gap near the 21 ema.
CELH 0.00%↑ continues to power higher after a PEG. It displayed RS this week closing up nearly 4% on heavy volume as the indexes took a breather. The 10 week moving average should be above the basing structure next week.
IOT 0.00%↑ pulled back on light volume this week as it met resistance near all time highs. After moving over 65% in two weeks, some consolidation before another leg higher is welcome.
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The content presented is for informational and educational purposes only. Nothing contained in this newsletter should be construed as financial advice or a recommendation to buy or sell any security. Please do your own due diligence or contact a licensed financial advisor as participating in the financial markets involves risk.