Stock Market Technical Indicators & Analysis
$QQQ was floating well above its rising 4 wk average (red dotted line) last week. That is a sign of being extended. This week it has returned to this important line of support. We have to see if it will close the week above this line. If it fails to, the next line of support is the 10 week average (blue dotted line). A failure to hold there would be a sign of significant weakness and a possible change in trend. I am mainly in cash in my trading account, having been stopped out of my positions.
I do not know how long this market can continue to rise based on the few stronger large cap stocks. Only 31% of NYSE stocks have closed today above their 40 day averages (T2108 indicator). In contrast, 55% of the Nasdaq 100 stocks have closed above their 50 day averages. I bought a little GLD after it registered a Blue Dot of Happiness oversold bounce. If this bounce fails I will exit. Are people seeking refuge in gold again? My longer term market indicators remain bullish, however. GMI=5, and it is Halloween!
If a stock has a GLB and then closes back below the green line, it is a failed GLB and I exit immediately. If it subsequently closes back above the green line, I buy it back. AAPL reports earnings on 10/30.
