Stock Market Technical Indicators & Analysis
With a p/c ratio of 1.26 the market will likely bounce.
I am watching GNRC for a short term rally. GNRC, the generator maker, usually rises when the US is hit with a hurricane and has shown good relative strength the past 2 days. Look at the volume on Friday and Monday as it rose in a declining market.
Friday’s indicators are very close to what occurred last June 16 when the QQQ bottomed and began a large rally. Will we get another tradable rally or will QQQ decline to hit that lower trend channel line or something else? No one knows but stocks often bounce during earnings season. These charts reveal the trend. First the daily…
This weekly 10:30 chart provides another picture of the trend. QQQ is leading the two averages lower.
Finally, my favorite chart is a weekly chart displaying the 4,10, and 30 week averages. QQQ kissed the 4 wk avg. last week and continued down. Note how declines tend to ride the declining 4wk average (red dotted) down. When a real market turn comes, QQQ will close above the 4wk then the 10 wk and then the 30 wk averages which will then begin to turn up. Until that happens, the down-trend is not over. Trend followers react after the desired signals appear, not before.
When the GMI=0, it is probably best to go short or go fishing….
“Finally there came the awful day of reckoning for the bulls and the optimists and the wishful thinkers and those vast hordes that, dreading the pain of a small loss at the beginning, were now about to suffer total amputation-without anesthetics.”
This quote appears in this slide which I will show my students tomorrow. It is indeed unfortunate that many older persons, and especially retirees, are having their financial lives threatened by the current declining market. This is why I publish this blog and teach young people what I wish someone had taught me at their ages.
