New $QQQ short term down-trend; skeptical of any rebound

GMI1/6
GMI-20/8
T210824%

IBD switches back to calling the market in a correction. The GMI, however, has remained on a steady Sell signal since December 10 and was not fooled by the end of year volatility. Monday’s action created a huge gap down with the index trading below its lower Bollinger Band. The market closed near its high for the day and the retracement has likely begun. I suspect the market may move up and fill the gap, but I remain skeptical of any near term rally. A lot of technical damage has been done to this market and the market leaders have been wounded. It felt great to watch this decline from the sidelines, in cash.

QQQ01042016

Leave a Reply

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