I usually wait for a new QQQ short term trend to last 5 days before I trade it. If the down-trend persists I will wade into SQQQ. Note the daily RWB pattern for QQQ is just about over.
Dr. Wish
Tech destruction ominous–$QQQ short term up-trend to end–on sidelines
The QQQ short term up-trend will likely end today. I am on the sidelines in my trading accounts, watching the carnage in the growth stocks that have led the market up. Look at this daily chart of the leader, NVDA, as an example. Note the high volume selling as support has failed.
The daily RWB pattern is gone.
But the longer term up-trend in the general market is still intact, as evidenced by the GMI, still at 6 (of 6).
$GS cup and handle break-out last week?
While the tech stocks have been hit hard recently, financial stocks have been strong. This weekly chart of GS shows that it had what appears to be a high volume cup and handle break-out last week. If the market reacts well to the new tax law, GS could really move up. Note that GS is approaching its green line historic peak of 250.70 reached in 2007.
The GMI remains at 6 (of 6) but the more sensitive GMI-2, which tracks nonfinancial tech stocks, is weaker, at 4 (of 8). I am tempted to jump on some of the stronger financial stocks but fear a major negative political event might take this market down. I am a chicken and always have one foot out the door. However, we could see end of quarter strength in the old leaders at the end of the month.
