This may be related to the unusual strength in biotech ETFs. Check out XBI, BIB, LABU. IBBQ
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Blog Post: Day 8 of $QQQ short term down-trend but GMI=4 and could turn GREEN on Wednesday; $QQQ back above all 12 daily averages in modified Guppy chart, see also RWB uptrend in $XBI.
The dotted line is the daily close. It has now retaken all 12 of the short (red) and longer term (blue) exponential averages. Another strong day on Wednesday might turn the GMI GREEN. The QQQ short term trend remains down but could reverse later this week. The AI stocks have not recovered but many other stocks are strong. It could be that the overbought AI stocks are being shot first and the other stocks will fall after a brief rise to overbought. I sold my SQQQ and will buy TQQQ if the QQQ short term trend turns up. In addition, biotech stocks remain strong. Check out INSM and the biotech ETF, XBI, see its RWB up-trend in its Guppy chart below.
Blog Post: Day 5 of $QQQ short term down-trend; $DIA, $SPY, $QQQ and $IWM are no longer in daily RWB up-trends; This is true even for $NVDA, see its daily modified Guppy chart.
NVDA’s short term averages (red) have now converged with their longer term averages (blue). Below is the daily modified Guppy chart for NVDA. The dotted line shows the daily closes.If the red lines decline below all of the red lines, it will be a BWR down-trend (see chart of META below) and very ominous. Regarding the weakening ETF, QQQ, I am accumulating the 3x leveraged inverse ETF, SQQQ, which rises 3x more than QQQ declines. I am mainly in SQQQ in my trading accounts. The longer term trends remain up so I have not yet exited the mutual funds in my retirement accounts. But market indexes, and especially their equal weighted equivalents (QQQE, RSP), look much weaker. This means that the smaller companies, which are masked by the large cap tech stocks in the weighted indexes, are much weaker.
This is a daily BWR down-trend.
