Here's The FindLeadingStocks.com AM Report
A Look At The Last Few Pullbacks- Friday Premarket 6/21/24
Good Morning Team,
The market is (finally) pulling back after being very extended.
Earlier this week, the Nasdaq 100 (QQQ) was +8.8% above its 50 day moving average (DMA) line and that is extended by historical measures.
Here's a look at the last few pullbacks:
March 2024 it was 3.6% before it pulled back.
Feb 2024 it was around 6% before it began to pullback.
Late December 2023 the QQQ was 7.8% above its 50 DMA line before it pulled back.
July 2023 it was 8.7% above its 50 DMA line then we had the 3 waves down from Aug-late Oct 2023.
The most extended it has been above its 50 DMA line was in June 2023 when it very briefly got 11.6% above its 50 DMA line before it pulled back.
What does all this mean? We are extended and odds favor we will pullback.
Just about anything is possible in life and in the market. Like I said the other day, we can continue to rally and there is no rule that says we have to pullback. All this means is that odds favor (high probability) that we are going to pullback at least to the 21 DMA line or to the 50 DMA line at some point in the near future.
I'll be back after the open with the AM Breakouts report and then most likely send the weekend report tomorrow morning.
Enjoy your day!
Adam
