Stock Market Technical Indicators & Analysis
QQQ’s 10 week average remains below the 30 wk average and the 30 week average is flat. If the 30 week should begin a decline, it will give the stage 4 signal that occurs at the beginning of a major decline. Last week, QQQ retraced to its 4 week average, as expected. I am mostly in cash on the sidelines.
The GMI remains on a RED signal.
Just look at a modified daily Guppy chart before buying or selling. A picture is worth a thousand words, or dollars. Ignore the fundamentals and stories. Just look at the stock’s behavior. I am sorry for those who are holding RH. In an up-trend all of the red lines must be rising well above the blue lines=RWB, see chart of USO. The dotted line shows the daily closes.
I do not reenter the market on the long side until the moving averages indicate an up-trend with the 4wk avg>10wk avg>30wk avg.The rally this week might offer the last chance to get out or trim holdings. Then again, if this is a true bottom I will have plenty of time to get long again. Real up-trends last months. I never fight the tape. Look at this chart and see how nice it is to be long when the 4wk>10wk>30wk. The GMI=0. When GMI= 5 or 6 my long setups are more likely to work.
