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We knew there would be a bounce back up from the large March decline. The key to the market’s direction will be whether the indexes can hold their March lows and retake their recent highs. See the modified daily Guppy chart of QQQ. Time will tell, but for now QQQ  remains in a BWR decline.

The 10 week average (blue dotted line) is close to declining below the 30 week average (red solid line), an ominous development. Note that QQQ has closed the gap below the 4 week average and is thus no longer oversold.

It is noteworthy when two stocks in a similar industry are zooming to ATHs in a weak market. Note their green lines and that they each closed (dotted line) above all 12 averages, in RWB up-trends. Note earnings release dates on each chart, 4/23 and 5/1. Check them out, and monthly charts below.

And monthly charts.

I told you that when a declining stock has its weekly high far below its declining 4 wk avg (red dotted line) the stock usually converges back with the average. That is happening thise week with the major indexes. See oval in this chart of SPY. It is likely that once the two kiss, the decline could resume. The 4 wk average declining below the 30 week average (red solid ine)  is another major sign of technucal weakness. The daily adapted Guppy chart reveals a steep  BWR down-trend.