After hitting all time highs at the beginning of February, the market wanted some of the money back. There started a huge sell-off of the tech stocks as well as the overall market. On the first week of selling and higher interest rates, it didn't seem like anything was out of the ordinary. It started off with a higher Monday, then a quick sell-off then slight recovery by the end of the week, but then a bigger sell-off continued.
The next week the market breached the 8 day moving average. This should have been the first indicator of things to come. Unfortunately many were caught in the sell-off since most times in the past had been "buy the dip" mentality. As the sell-off continued into week 3 (last week), Friday offered the most hope, after breaching the 20 day moving buyers finally came back and closed back right on the 20 day moving average on the weekly chart. This was enough motivation for buyers to come back in this week on Monday and Tuesday. Tech hasn't fully recovered yet, but oil and reopening plays are becoming more and more attractive.
Are we out of the woods yet? I'm not sure, but if enough bulls come in, the market can resume its upward trajectory. Still 50% cash. We shall see. Happy investing!
