All of my indicators are positive.
Dr. Wish
$QQQ short term up-trend reaches 65th day, still cautious
IBD went back to call the market in a resumed up-trend. As I said yesterday, the QQQ was on critical support and could bounce. And AAPL re-took its 10 week average. The QQQ’s rise occurred on lower volume than the preceding day’s decline, however. Only 68% of all stocks rose, compared with 89% of the Nasdaq 100 stocks. There were only 246 new 52 week highs in my universe of almost 6,000 stocks on Tuesday, compared with more than 300 on each of the days before Tuesday’s rally. So this advance was not as deep as one might think and was concentrated in the tech stocks. While I took on more long positions on Tuesday, I am ready to exit if this rally fades.
End of $QQQ short term up-trend Tuesday?
After 64 days, the QQQ short term up-trend could end on Tuesday with a down or flat day. (IBD now declares uptrend under pressure.) It was a great, long ride! The QQQ is on several levels of support that I monitor, so that index could bounce up by Tuesday’s close. If it does, the key for me is whether that bounce will hold through Wednesday. A failed bounce could lead to a large decline. I cut back on my holdings in my trading accounts on Monday. Remember, a market always falls faster than it went up, and this market rose pretty fast.