We have some major divergence heading into the final trading day of the week with the Dow down almost 200 points while the Nasdaq is up 70 points.
That Nasdaq move is pretty random, but the Dow being down so much is not, and this is very important…
When you see the Dow up or down 150 points or more, that’s telling us that something pretty big is going on.
The S&P 500, meanwhile, is a combination of Dow and Nasdaq stocks, which creates friction when one index is up big and the other is down.
Ultimately, what this means is it’s going to make it very difficult to day trade because the market isn’t trending and will likely be choppy.
I also wouldn’t make any moves until after the big Fed reports at 10 a.m. ET — I believe Consumer Sentiment could be very bad.
The bond market (TLT), meanwhile, is giving us some tailwind. And if it can keep rising and break above its descending triangle trendline (above $90.30), we could start seeing an uptrend.
This would be very good for the market…
I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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I’ve picked out the best stocks I’m targeting next, and I’m in the LIVE room at 10 a.m. ET today, Feb. 21, to share them for free!
