The disengagement of tech stocks from other large cap stocks continues. The QQQ is in a short term down-trend while the SPY and DIA are trending up. It remains to be seen when the indexes will get in synch again. Given the incredible air pockets showing up in stocks like CMG, GWW, IBM, GOOG and AAPL, I suspect that this is a harbinger of a weak market to come. When the leaders cannot advance, neither will the weaker stocks.
Dr. Wish
8th day of QQQ short term down-trend but GMI flashes buy signal
With the GMI above 3 for two days, it is now flashing a buy signal. The tech stocks, as reflected in the QQQ, are lagging. IBD still calls market in correction.
GMI rises to 4; 7th day of QQQ short term down-trend
Another strong day on Wednesday could turn the GMI signal to “Buy.” IBD still calls market in a correction.