The market finally let go, and it started under the surface long before the S&P noticed. In this one I break down the S&P losing its hourly 50 as Moxie fired down, the MAGS getting knocked back from a previous high, and the VIX triggering higher. Even AMD and Dell have now lost the daily 50, which is why I am leaning short here.
We are losing the AI trade, and the rotation underneath is starting to change the whole market. In this one I break down why the MAG 7 have turned defensive, the negative divergence I am watching on the IWM, and why the S&P breaking the hourly 50 has my attention. This is a time to be on defense, not pressing the long side.
Target is on my watch list with ideal squeezes on multiple time frames while sitting in a strong, bullish trend. I want either a pullback into $130 to time a long, or a break and close above $140 to play the upside. My line in the sand is a break below $125, which has me protecting capital.
The SPX is sitting in a big wedge with ideal squeezes firing on the 4-hour, 2-hour, and 30-minute charts, so I am leaning toward at least one more pop before this move is done. I am long the names that look strong to the upside, not shorting the top, while I keep a close eye on my exits.