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Wednesday was the 16th day of the QQQQ short term down-trend.   The Worden T2108 Indicator is still in oversold territory.

We may get a real bounce now.   While everyone thinks we have just had a correction, I am concerned that we could get a brief rally that fails and completes a major top.   So I remain skeptical until the the market reveals its true trend.   If this bounce holds for a while, I would watch NFLX carefully because it has held up very well during the decline.   Gold mining stocks and GLD also look like they may be ready to rally. They keep coming up in my   bounce from oversold scan.

The one day bounce begun last Friday could not even hold on Monday.   I would be nuts to fight this severe down-trend.   The QQQQ short term down-trend completed its 14th day on Monday, having fallen 7% since I identified it. (Trend followers can only identify a trend,   sometime after the peak, so the QQQQ is actually down more than 11% from its peak.) Since the first day of the new down-trend (D-1), 97% of the Nasdaq100 stocks, 100% of the Dow 30 and 96% of the S&P500 stocks have declined.   This is why determining the general market trend and trading consistent with it   is so important.   People who have stayed long have had their portfolios decimated.   In my IRA trading account, I am in cash and long a little gold via GLD.   In addition, I continue to hold a   short position in China stocks through the ultra short ETF, FXP, and am short GOOG (via a put option) , which has popped up repeatedly in my submarine scan. Today’s pre-market futures indicate another down opening…………