The GMI=2 and could flash RED on Monday.
General Market Index (GMI) table
Blog Post: Social Media abuzz about Friday’s bounce off of 50 day average; Major indexes also bounced off of lower Bollinger Band and had a blue dot signal, see daily chart of $QQQ and analysis; This week we see whether the bounce can hold. GMI=3
Either Friday’s bounce will hold or it won’t or it will fake us all out. The fact that QQQ (and DIA and SPY) all bounced their 50 day averages, their lower Bollinger Bands and had Blue dot signals suggests the bounce may hold. At least technical analysts will think so. But I must react, rather than predict or anticipate. If QQQ holds, I may buy some TQQQ. If it fails, I may buy some SQQQ. Or I may sit safely on the sidelines. The Blue Dot of Happiness oversold indicator is explained in my recent TraderLion Conference presentation on Day 6. These days I find it better to hold off pulling the trigger until late in the day when I know where an equity is likely to close. Otherwise I get whipsawed by the moves early in the day.
The GMI= 3 and the more sensitive GMI2=2. Another weak day for QQQ will end the $QQQ short term up-trend at day 54 and reduce the GMI to 2.
Blog Post: Day 49 of $QQQ short term up-trend; $QQQ, $DIA and $SPY remain in RWB daily up-trends, but there were many new lows last week; the GMI=4 and Green, see table.
