With the major indices quite overbought, it is not surprising that the bullish momentum is slowing down a bit. NFLX just reported a disappointing earnings which is likely to drag the Nasdaq down a bit but perhaps not that much.
As you can see from the chart above, QQQ is quite overbought with a reading of more than 96 in the stochastics. Therefore at least a slowing bullish momentum can be expected. If you check the SPY and DIA you will also notice the same overbought readings.
The chart above shows the 60 min chart of DIA and frankly speaking the market is overbought but there is no 60 min downtrend yet. The uptrend in the 60 min chart is still intact and there is some support area below. DIA is still above its rising 20 MA and 50 MA though I must say that it is trading quite near the previous resistance.
It might take some time to overcome this resistance. No weakness yet in the 60 min trend but if DIA starts to drop below the 20 MA and 50 MA then we have to be careful of a more deeper correction.
Netflix reported earnings news that are below expectations and therefore might be gapping down today. However there is ample daily support below. Bargain hunters might want to have a look and see if NFLX can stabilize there.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
May 30, 22 07:20 AM
What is the market doing and what is it likely to do?
Apr 27, 22 09:01 AM
As we enter April, will we continue to move higher or will there be a correction coming?
Apr 13, 22 11:46 PM
Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq.
Apr 12, 22 09:38 AM
Here are a list of stocks that are at their 50 MA and 200 MA. The 50 day moving average and 200 day moving average can be a support area where stocks bounce off
Apr 12, 22 09:34 AM
Here are a list of stocks that have broke out or about to break out. Breakout stocks can often give us a good reward to risk ratio.