Weakness

Detailed analysis below...

We saw more risk off action in US stocks today despite the S&P 500 finishing flat.

The indices are masking A TON of weakness right now. As I always say, “it’s a market of stocks”.

In “Risk Off”, I talked about how some leading AI stocks put in potential Climax Top patterns last week.

Quantum Computing stocks, probably the most speculative group out there (and therefore 1 of the best indictors of risk appetite), are all following through to the downside this week.

IONQ

This appears to be a classic topping formation to me.

Let’s start with the monthly chart. We still have 8 trading days left this month, but IONQ will need to pull off a miracle rally to avoid this monthly topping candle.

This is a classic shooting star topping candle on the monthly chart right now for IONQ.

Let’s rewind back to 2020.

Zoom (ZM) was the hottest stock on Wall Street, with everyone saying that the company was going to change the way we worked forever. It rallied from $65 to $588 in ~8 months.