GMI: 1; GMI-R: 2; T2108: 4%; 35th day of QQQQ short term down-trend; Signs of strength;
The GMI rose to one and the more sensitive GMI-R, to two on Monday. The Worden T2108 is now at 4%, still in extreme low territory where bottoms occur. However, the percentage of Nasdaq 100 stocks with their MACD above their signal line is now 39%, a level not seen since August 28. Often times this MACD pattern shows up early in a reversal of trend to the up-side. So, while the indexes remain far below my typical buy point for a trend reversal, there are signs of life. According to my methods, the QQQQ has just completed its 35th day of a short term down-trend and would have to rally a lot to change to an up-trend. Of significance to me, IBD now reports the market to be in a rally, having experienced a follow-through day. I may be tempted to make a small pilot buy in a strong stock if the market continues to strengthen. But for now I treat all rallies as suspect.
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