As we head into a slew of earnings releases we are about to see how ugly the rapid spike in inflation is making things. The indexes saw a consolidation as we ended the recent short trading week. Long term we are definitely still in a downtrend and there hasn’t been anything to show that is going to end anytime soon. The NASDAQ often leads the other indexes and we are looking at a potential breakout to the downside. Take a look at the chart:
You can see we are below all three major moving averages and also that the MACD is pulling down. Understanding the trend is extremely helpful when finding and selecting your next trade. As we watch the slide continue consider looking at buying puts, using inverse ETFs and be cautious in your position size. Downtrends are often much sharper than rallies and can get away from you quickly.
Keep learning and trade wisely,
Market Wealth Daily