Blog post: How the market responds to the CPI number on Friday will reveal much about the market; Is $QQQ setting up for H+S top? See daily chart..

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A head and shoulders top is a significant technical pattern. It is possible that QQQ is setting up for this type of top. The fact that the neckline (purple line) is sloping down also signifies more potential weakness. On the other hand, if the right shoulder is exceeded, it is off to the races. It should be interesting to watch. With the Fed meeting next week, volatility should be big. One bullish factor is that the Investors Intelligence poll of investment newsletters shows only 40% bulls.  Tops are likely when there are more than 60% bulls. Bears are only 25%. When there are more bears than bulls, a rare occurrence, the market bottoms.

 

3 thoughts on “Blog post: How the market responds to the CPI number on Friday will reveal much about the market; Is $QQQ setting up for H+S top? See daily chart..”

  1. I did not receive the notification for this presentation (See my presentation to AAII Chapter at RTI, Tomorrow, Sat 10 AM, EST) until the day after it happened. Where can I find the replay?

  2. Ditto here, the notification for the AAII program just came in my email today, 12-12-21. Is there a recording of it that could be posted?

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