I pointed out this bear flag (above) in the trading room for observational purposes only today. I didn’t act on it or make a short trade (really wish I added in some SQQQ), but charts can tell a story. As you know by now, AAPL and TWTR made a mess of things after the close as their earnings were brutally bad.
The Nasdaq has been acting the worst of the indexes and it will be worse tomorrow when the market opens. Here is the QQQ right now in the after market.
I said the other day that when the market turns lower, the Nasdaq would be the first to puke. Its starting. And we still have AMZN, LNKD and FB on deck on the tech front.
You have to wonder how the fledgling Nasdaq will effect the Russell 2000 which has been really acting well of late. Eventually, its all connected.
FOMC Tomorrow at 2PM
If Janet Yellen appears dovish tomorrow (does she know any other way?), we should see a bit of a rally, especially in commodity related items.
Have a great night.
Joe