SPY is turning into an RWB up-trend. Check out this daily Guppy chart.
With the GMI at 4 it will only take another good day on Wednesday for the GMI to issue a Buy signal. I closed out my shorts and went a little long on Tuesday. Those who follow my tweets already know this. If you want to follow my rare intraday tweets, sign up at: @wishingwealth
The short term trend may also turn up on Wednesday. This daily Guppy chart for the QQQ shows that it has now closed back above all 12 moving averages. The close is portrayed by the gray dotted line. It is safest to trade with the trend…..
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Friday was the 19th day of the QQQ short term down-trend, within a longer term down-trend. The Dow 30 stocks, measured by the ETF, DIA, is weaker than the QQQ. Note in this daily Guppy chart that the DIA is lower than all 12 daily moving averages. The dotted line is the weekly close of the DIA. The dotted line tends to lead the averages. The shorter term red averages are declining and if they create a BWR (blue/white/red) pattern the market will be in another swoon. Note the preceding RWB advancing pattern.
The QQQ is showing a little more strength, but it remains in a BWR down-trend. . While it closed Friday below all of the blue (longer term) averages, the QQQ has climbed above all of its red (shorter term) averages. It has done this 2 times in the recent past and each attempt has failed to climb above the blue lines. A close of the QQQ above all of the blue lines (around 106.92) would be a strong show of strength and might signal the end of the BWR pattern. Stay tuned….
With the put/call ratio on Thursday at 1.19, there will likely be an up day on Friday. Also, the major market indexes I monitor all bounced up from their lower 15.2 daily Bollinger Bands on Friday. Check out this daily chart of the QQQ. With the GMI at 0, I remain in cash and a little short.