Strategy Update (2024-03-06)

Previous days marked by a clear character change in the major averages as well as in stocks reversing from recent highs.

Yesterday all the major averages closed significantly lower. The Nasdaq closed down -1.80% on above average volume, which qualifies as a distribution day.

Next coming days will be telling to see if the general market holds around the current levels and bouces, or starts to chop and eventually breaks down from here.

Strategy remains on a green signal, however the current uptrend which started on November 7th has been running for roughly 4 months. There's typically only a few times during the year for such strong and long uptrends, therefore it might soon come to a halt.

While it looks like we may continue on a long-term uptrend, a short-term deeper pullback shouldn't be ruled out.

Will continue to keep a close eye in case the strategy changes to a red signal.