Market reverses-QQQ short term up-trend in doubt

GMI3/6
GMI-24/8
T210827%

I moved to a largely defensive position on Tuesday.   The QQQ short term trend could turn down today if the index does not rebound strongly.   The DIA (Dow 30 ETF) looks much worse than the QQQ and the SPY.   The DIA is now below its 30 week average, a sign of major weakness.   Check out this weekly chart and compare it to the one of the QQQ I posted earlier this week. If the red line (30 week average) curves down, it is a very ominous signal.   The GMI could also issue a Sell signal this week if it has 2 days below 3.

DIAweekly08282013

3 thoughts on “Market reverses-QQQ short term up-trend in doubt”

  1. Doesn’t the GMI have to be below 3 for two days in a row? If this is the correct guideline, wouldn’t Wednesday and Thursday both have to be below 3 for a sell signal? Are there other criteria that would modify this guideline so that a sell signal would take place on Wednesday?

  2. Dr. Wish and Rick, I did not wait for GMI below 3 on the 2 consecutive days. On Tue I just sold all my shares in INVN and DDD because TUE was the second day of down market after the threat to attack Syria, and because I already had over 50% profit. My guts told me to sell while I had profits.

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