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  • Writer's pictureT. Livingston

Distribution Hits SPY & QQQ With A Needed Pullback Likely

Over the past few weeks, we've started to see a change in character in the general market. The S&P 500 has started to show signs that a pullback is likely. We've started to see momentum waver and distribution pile up.

The chart of QQQ shows even more distribution. This makes sense since stocks like NVDA and META are extremely extended and stocks like AAPL have started to turn over.

Sentiment has also reached levels where a pullback is likely. Notice that at times when we see a large amount of bulls with an absence of bears, the market usually comes in. Now, long-term I'm still extremely bullish for 2024. It just looks like the indexes may need some time to pull in towards their 50 or 200-day moving averages here. I actually would prefer this because a pullback would help wipe off some excess bullishness and help lay the foundation for the next uptrend. In fact, a pullback on the general market here may also allow me an opportunity to add to my SPY position without feeling like I bought at extended prices.

Bitcoin looks like it needs to pull in a little here to digest its' monster gains. I still believe 2024 will be "The Year Of Bitcoin" and that much higher prices are likely. I'll be monitoring it closely for an entry point where I can add once again to my position.

Risk right. Sit tight.

To learn more about swing trading strategies, stock market trading, and how to trade cryptocurrencies, visit my course page.

Full Disclosure: I currently own Bitcoin, SPY, Solana, and Ethereum.

Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.


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