If there was one thing that compelled me to trim my risk yesterday, it was the fact that chart after chart after chart (particularly of “younger” stocks that hadn’t been around very long) had been incredibly battered for a couple of weeks and seemed to be getting off the mat.
Quantum (NASDAQ:QMCO), for instance, had fallen virtually every day for weeks, but after the stuffing was knocked out of it, there was no more selling left to do. Even WeWork (NYSE:WE) was up!
There were some pretty terrible gap violations yesterday, such as with SPDR® Dow Jones Industrial Average ETF Trust (NYSE:DIA) and iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG).
I’d say the next thing to watch would be the gap with iShares Russell 2000 ETF (NYSE:IWM), which is coming up fairly fast.
It’s an awfully quiet week, with the only meaningful “event” being the CPI pre-market on Friday.
