The Long Investor

$SPY TOP 20

Added 2024-03-10 20:30:53 +0000 UTC

$SPY is very similar to the $QQQ chart, looking extended now and rejected at our Wave 5 target on Friday at $516 with the sell off in the Semi Sector.

I believe there may be more rotations into smaller sized companies so the $SPY may not fall at the same time as the $QQQ as the rotation continues to happen......because there are still many bullish charts on the market right now and are not in Wave 5 but in fact only in Wave 1.

This is a very common misconception about the market, that if the $SPY pulls back, then every company pulls back, that is not true.....$SPY is not equally spread in weight over 500 companies, the Top 7 companies alone make up 29% of the $SPY (and 40% of the $QQQ)....so these companies can pull back and a lot of other companies in those markets can have no issues rising....this is a common rotation.

This is why we never sell everything and go to cash, we take profits from those that are completing Wave 5 and buy positions that are starting their impulse waves or have already completed their Wave 2's.

When I am happy that Wave 5 has rejected and Wave A is confirmed, I will immediately alert the group.