The Nasdaq Nestle:
The Nasdaq showed some muscle not buckling Monday after a lukewarm start to the week. Depending on your bias you can paint your feeling either way. The bulls will say the 7 week winning streak is evidence of the index getting its feet back under it. Bears could rightly point out the hesitation at the 200 day SMA, and the bearish shooting star weekly candle last week that CLOSED 1.5% off intraweek highs. Both can remain steadfast in their opinions, but the longer the tech heavy index spoons the line, the better the bulls can maintain their confident stance.
Event Driven Downside:
I will be the first to admit I have little knowledge about the event driven process. Nor do I need to. Price action tells me all I want to know. Below is the chart of QCOM, which was once a leader in the semiconductor space. It has been described now as a law firm as it battles incessant litigation, but just one look at the chart tells a gloomy story. A rare name that has made a new low in January, completely oblivious to the robust rally the last 7 weeks. PRICE does not lie.
Bottoms take time. Like we have always maintained we prefer to buy strength, but after the debacle late last year, many names were unable to sidestep the damage. Below is the chart of BOX and how it appeared in our 1/18 Technology Report. It still trades 21% off most recent 52 week highs, but has repaired its complexion clearly since 2019 ringed in. It blew past the very round 20 number, and has now CLOSED five straight sessions above its 200 day SMA.