$SPY TOP 20
Added 2024-07-21 20:02:06 +0000 UTCThere are a lot of variables at play right now:
Tech rotating to Small Caps
Earnings season kicking off
Influences on the Fed to delay Rate Cuts
Trumps assassination attempt
Biden not running for re-election and the uncertainty until a new nominee is announced
The Market in Wave 5 and whether it can get one more last leg out of this structure
Inflation, Savings depleted, Election year etc..
There is a lot at play but I believe that earnings will continue to be the largest influence on the market, Revenue and Margins is what speaks the loudest and if the Mega Caps can beat estimates, with a healthy guidance then the market can move higher until the Rate Cut happens
The market certainly felt the rotation out of the Tech sector this week, led by the Semi sell off, if this continues and the 50 Day MA is lost and more importantly, rejected on the retest, then we will assume that the ABC correction has started, which is what I have presented above.
The $SPY held up a lot better than the $QQQ this week due to this rotation and because of its make up, since it is not completely reliant on one sector.The 50 Day MA is not being tested yet, unlike the majority of the Mega Caps, so it is still not under threat of breaking down or confirming the ABC correction, losing $540 and rejecting after the retest and this will be confirmed, until then, my Wave 5 target is still in play.
Buy Zone has also been added at the 0.5 Fib too.
