Apple completed its top and went below its 50-day MA today. Tesla is also below. The window is open for a plunge.
If the market slides overnight, this would be the next big shoe to drop: a massive island reversal off a top in semiconductors. I am not calling for this, merely pointing out what would make me extremely bearish. On the other hand, were SMH to fill this gap tomorrow and bounce, it could mark the bottom of the weakness this week. Definitely something to watch no matter what side of the trade one is on. Moreover, this is the last tech sector standing, along with a few holdout stocks like Apple. If semiconductors sink, then capitulation selling may finally get underway. Note that SMH lost support as dd XLY today (not pictured). I saw this in a comment at Slope: Below are the three time periods, the chart is the S&P 500. The 1987 and 1980 lows were the end of a long down move and have clear long-wicked candles consistent with capitulation selling. Today, the Russell 2000 completed a massive topping pattern. The most relevant time is March 6, 2020 in my opinion.
Lightspeed Doom-Scroll
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FEEDTwo minutes will manage to address any optimism you have left.
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