I have never seen a market so split like the current one. The QQQQ rallies for six consecutive days and rises 6.7%, even as the longer term technicals seem to remain in down-trends. Many of the stocks I follow now have a stochastic value above 80% and the Worden T2108 Indicator is now at 68%, close to overbought territory. Much of the market seems to be overbought even as the indexes remain below important moving averages. So, what to do? I will stand pat on the sidelines and wait to see if the indexes can push through these averages and begin a longer term up-trend. Failure to get through the resistance could lead to a significant decline. With the GMI at only one, I will not go long.
Dr. Wish, I may be wrong but it looks like GMI should be at least 2 because:
Daily QQQQ is above 30 MA
Daily SPY is above 30 MA
and looks like 250 day high should have been at least 100.
QQQQ must close above 30 day for 2 days to go positive.