The Nasdaq (+3.082%) made a strong reversal towards its main averages (EMA21, SMA50 and SMA200). For true uptrend confirmation, we need to see more volume on the green candles (institutional currency) and price at least above the Feb/March lows and then above SMA50 and SMA200. Watch these levels, but keep an eye out for the support levels: 10800 and 10500.

SP-500 (+2.39%) made a similar move, but with lower volumes. Not necessarily a bad thing, but it would have been better to see more commitment to this turnaround. Look at the three levels marked on the chart — the three black lines — to assess the (new?) trend. Waiting to build higher lows and base. Also, keep an eye out for the 38500 support area.

In the news

The United States and Europe are racing to improve food supply chains after India banned wheat exports.

China has quietly built a blockchain platform that aims to make it easier for businesses to deploy the technology.

Elon Musk says Twitter deal on hold pending fake account details; shares fall 9%.

Russia’s neighbour, Finland, confirms that it will apply for NATO membership.

Saudi Aramco posts record quarterly profit on soaring oil prices

Sectors

  • Yesterday’s Best Sector: Cyclical consumption, then Technology. Worst Sector: Utilities.
  • Best weekly sector: Consumer Defensive, then Communication Services. Worst sector: Cyclical consumption.
  • Best monthly sector: Energy, then Defensive Consumer. Worst sector: Cyclical consumption.

Feeling

  • NAAIM (weekly, neutral between 70 and 90): 24.31
  • VIX (neutral under 20): 28.87
  • Equity Put/Call ratio (neutral between 0.7 and 1): 0.99
  • CNN Fear & Greed: 12 (Extreme Fear)

Width

  • Stocks above SMA40 (neutral between 30 and 80): 15.51%
  • Stocks above SMA200 (neutral above 30): 22.42%
  • Number of stocks that rose more than 4% yesterday: 774
  • Number of stocks that fell more than 4% yesterday: 61
  • McClellan oscillator (neutral between -100 and 100): -30.23

Revenue reports

Notable earnings reports for today:

We are not off the hook yet. It is better to wait to see a new uptrend confirmed (at least wait for FTD, Follow Through Day).

This strong rebound may be a short-covering, it is not at all a confirmation of the bottom. We need a base first, a possible retest of the lows, and then see the money coming in.

Testing the waters might be a good idea, no FOMO, just small positions and gradual exposure.

Celsius ($CELH) had a very strong response when the market was positive. A trade over $57 with a Stop Loss at $55 might work.

Chevron ($CVX) remains patiently above the EMA21 and SMA50. If the price breaks above the black line, the trade could be followed with SMA50.

Alpha Metallurgical Resources ($AMR) is sticking to its main averages. A price above the black line could signal a working trade. Stop Loss at 5%.

Exercise due diligence if or when placing a trade. All ideas expressed here are my own and do not represent trading or investment advice.

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