Nasdaq Closes Below 50-EMA (-2.6%)

BUY CAUTION Market Mode was declared after 05 May. On 07 May, the Nasdaq failed to close above its 10-SMA, and on Monday, the Nasdaq plunged -2.6% and closed well below its 50-EMA. Note that the -DMI made a new high, so investors are taking "risk off" in early May. ADX is still low, so we're still in a range condition, not a downtrend. There has been strength in homebuilders, lumber, and steel (more cyclicals), but growth stocks are out of favor at present.  I'm keeping my powder mostly dry and looking for stocks to find their support levels over the next few-to-several weeks. We're seeing some price inflation, and that could be a negative for the stock market. Recent jobs data was disappointing as the economy is recovering from Covid.