Market technicals split; overbought but GMI= 1

GMI1/6
GMI-R5/10
T210868%

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.

2 thoughts on “Market technicals split; overbought but GMI= 1”

  1. 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.

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