By: Tom Gentile
on February 11th, 2022
I had a little fun in my weekly newsletter by asking what your favorite dip was and I added pics of a bean dip, a spinach and artichoke dip and a ranch dip. I then said but how about a ‘Tech Dip?’
Prior to the last two days of trade, it looked like investors favored the Tech Stocks. The dip in Tech happened through January and looked like it found a (double) bottom between January 24-27, 2022.
The run up since then was going really well until the last two days. The NASDAQ, (along with the Dow and S&P 500 have both sold off the last two days).
Is the Stock Market Going to be OK? Let’s start with a look at the NASDAQ
Take a look at the Q’s, the Invesco QQQ Trust, which is what I use to represent the tech-heavy NASDAQ.
In this 100-day chart you can see where the Q’ bounced of their January lows only to trade up to an a=overhead resistance that is the 200-day Simple Moving Average (SMA).
A retrace to the January lows wouldn’t surprise me, but from a bullish perspective it would be nice to see the Q’ trade up and close above the 200-day SMA.
Taking a look at the Chart on the SPY Stock / ETF:
The SPY Stock/ ETF actually shows it dipped below the 200-day SMA only to rally and stay above it the last 11-trading days.
This is a delayed chart in my tools, so if you want real-time stock market live quotes check your brokerage platforms for that.
What I would say needs to happen to keep a bullish bias is the SPY needs to stay above the 200-day SMA.
The boxed range I have on the chart is where price support and resistance are right now. A break below the 200-day SMA and I would go back to my Morning Reports tool and look for active put options.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.