New QQQ short term down-trend; GMI flashes “sell” signal

GMI1/6
GMI-20/8
T210852%

The QQQ short term up-trend has ended after 26 days.   I am most confident of a change in short term trend once it has persisted for 5 days.   The GMI has also flashed a Sell signal and IBD sees the market in a correction. So I am mainly in cash with a small position in SQQQ, the 3X leveraged inverse QQQ ETF.   It is designed to rise 3X as much as the QQQ declines. Note this weekly chart of the QQQ shows that this index ETF has closed below its 30 week average (red line). The 10 week average (blue dotted line) is also below the 30 week average, another sign of weakness. Click on chart to enlarge. It remains to be seen whether the QQQ will quickly retake its 30 week average as it has several times in the past 10 weeks.   But it is better for me and my money to be safe than sorry.

1 thought on “New QQQ short term down-trend; GMI flashes “sell” signal”

  1. That QQQ looks like a 4th wave finishing and and a five down wave ready to come. Usually this is going to be the most violent one. If this 5 wave move that began at the top of the chart plays out correctly we will get a choppy 3 wave retrace that will recover 61% drop and then another 5 wave down. This is what is called an ABC correction according to Ellioticians.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: