We are in one of those periods when the market refuses to send me clear signals regarding the short term trend. I am therefore mainly in cash and/or completely hedged in my trading account. I am buying put options as insurance on all long positions. The GMI is at 5 (of 6) and the GMI2 is at 4 (of 6). Friday was the second day of the new QQQ short term up-trend. However, the QQQ could start another short term down-trend with a decline on Monday. Only 29% of the Nasdaq 100 stocks closed with their MACD above its signal line, reflecting short term weakness. The Worden T2108 is at 51%, in neutral territory.
Check out the weekly chart of the QQQ below. The QQQ has an RWB pattern and remains in a strong longer term up-trend. Nevertheless, we could experience short term weakness for a while. IBD continues to label the current market as being in a correction.
Meanwhile, AAPL is sitting on key support. A close below the 30 week average (red line) would be an ominous sign for it as well as the rest of the market. When AAPL cannot hold up, how can the market? Click on chart to enlarge.