In case you missed it, Monday marked the largest stock market sell-off of 2021.
The S&P 500, Dow Jones, Nasdaq and Russell 2000 all experienced huge moves to the downside.
So what happened?
Cases of COVID-19 are rising with the emergence of the delta variant, and there’s a growing worry that it could provoke another series of lockdowns.
Those fears resulted in travel stocks and other reopening plays getting whacked. In fact, most of them look like they wanted to retest their March 2020 lows. Ouch!
Stock Market Sell-Off: Growth in the Face of Adversity
Where we’re seeing strength is in the growth stocks that exploded during 2020’s outbreak.
These are your Cathie Wood Ark stocks… names like Tesla Inc. (Nasdaq: TSLA). Teladoc Health Inc. (NYSE: TDOC) and Peloton Interactive Inc. (Nasdaq: PTON) … You get the idea…
And let’s not forget about defensive names on which yours truly made a ton of money last week: Coca-Cola Co. (NYSE: KO), PepsiCo Inc. (Nasdaq: PEP) and Keurig Dr Pepper (Nasdaq: KDP).
Those names all performed strongly during the stock market sell-off. So there certainly are pockets of the market that held up under the pressure.
But where do we go from here? Was this a one-day freak out, or the beginning of an honest to goodness correction?
Well, there are four charts I have my eye on right now and in today’s video, we’ll drill down into what they are — and why every trader should watch them like their account balance depended on it.
4 Charts to Watch After Monday’s Stock Market Sell-Off
One chart I’m watching closely after Monday’s stock market sell-off is the iShares Russell 2000 ETF (NYSEARCA: IWM), which is made up mostly of small-cap energy and financial companies.
Let’s be honest — those two sectors have been getting crushed, but they’re starting to bounce. And with that, they should lead the way to the upside.
But more importantly, if you need to day trade — something I have been more attracted to of late because of the uncertainty in the overnight and overseas markets — I have three critical charts I watch religiously.
Check out the quick video below and I’ll explain what those indicators are and how I use them to inform what I trade, how I trade it… and a few stocks they’re pointing toward right now. Leave me a comment and let me know if you escaped Monday’s stock market sell-off — and if you bought the dip!
As always, you can follow me on social media @lanceippolito on Twitter and Instagram. And don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
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