Market Update 2/23/21 - mixed markets

 If you missed the last update, you should review it, just to get caught up to speed. 

Yesterday (Monday) we saw tech and the NASDAQ sold, while energy stocks were driven up around 3%. 

This morning we see the $XOP pinned above support. Think it could test the 85 level, but I remain bearish Energy. 

Oil service stocks continue to trade into a broadening top pattern, and I see the highs being tested 1 more time, before this pattern completes. 

The NASDAQ was taken down below the 50 day moving average, which is significant, but we're seeing the same pattern... as on the above energy chart. I suspect we see the price action craw back into the upper channel, or gap back above the 50 ma, which would trigger program buying. 

$SPX - same expanding ascending triangle pattern - support 3740, res. 3885. 

Another this that's significant is that the $VIX was hammered below the 200 day ma, and if you follow my linked in alerts, you know real res. is 25 (at my red line). There's also a possible gap fill target on the $VIX around 28. 

There's a possibility this is just the beginning of a larger correction, but selling season isn't until May, and we're not really seeing a risk off situation. Even the $RUT is poised to bounce back here, after testing key support. 

That's about all I got, for now. 

Take Care, AA

Tweet