The S&P 500 fell by roughly 1.25%, while the NASDAQ finished down over 2%. Tuesday's drop quickly erased Monday's advance.
The pattern in the Invesco QQQ Trust ETF (NASDAQ:QQQ) worked out quite nicely, with the ETF returning to the origin of the move higher.
The whole drop started when a usually dovish member of the FOMC sounded very hawkish. That doesn’t bode well for tomorrow when the minutes are released.
From a technical sense, there was something much worse at play here, which was a rising broadening wedge. The QQQ closed just a touch below the bottom trend line, not enough to convince me the pattern had broken down. If it does break down, which I expect to happen, nearly all of the gains from the middle of March will be gone.
S&P 500
The same pattern is present in the S&P 500.
TIP ETF
The iShares TIPS Bond ETF (NYSE:TIP) keeps dropping, and it isn’t even oversold yet. Meanwhile, the gap between the TIP and QQQ keeps growing wider. Just watch the TIP ETF.
The relationship is powerful between the TIP ETF and Amazon (NASDAQ:AMZN). So I’d be rethinking my thesis if you are someone looking for Amazon to go higher.
Dollar Index
If there wasn’t enough going on, the dollar index broke out yesterday, rising above resistance around 99.40; the next stop is over 100. I know that is not much of a call, but it is crucial.
Amazon
By the way, I forgot to mention that there is a Head And Shoulders pattern on the Amazon hourly chart.
Shopify
Shopify (NYSE:SHOP) has the same pattern.
NVIDIA
NVIDIA (NASDAQ:NVDA) has the Head And Shoulders pattern too.
Block (Formerly Known As Square)
Block (NYSE:SQ) too.
