Markets don’t appear particularly bullish and one of the things I look at in times like this is the number of stocks making 90-day breakouts and breakdowns…
And the stocks breaking out versus breaking down is 150-9. This tells me things are getting “toppy” and that we need to see more downside pressure.
The market needs a rhythm in order to start making new highs, and the rhythm right now is out of whack and likely to soon revert lower.
Markets will open flat or close to it, and here’s a little pro tip…
If you’re looking to go long, that’s harder to do when markets open higher. If you’re looking to go short, you want the market to go higher.
If either of these things happens, it’s a higher-probability trading environment.
You probably know that chip stocks have been absolutely on fire, but has a double top formed in the sector ETF (SMH)? This is making me nervous…
I’ll cover all that and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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