Fast daily 10.4 stochastic has now crossed down below slow daily 10.4.4 stochastic. On sidelines in cash.
All Posts
GMI=2, stays Red; Cash is king
The QQQ closed (dotted line) back below all 12 averages in the daily Guppy chart.
As did the SPY.
Will the prior lows hold? For now, cash is king! The time to be invested is when the red lines are rising above the blue lines (daily RWB pattern), as was the case for the QQQ most of the time since 2017.
And the weekly Guppy chart shows very clearly that the longer term trend of the QQQ has changed, with the weekly RWB up-trend pattern gone.
Overbought?–$DIS, $SPY, $QQQ have daily 10.4 stochastics>90
When the index ETFs have overbought daily 10.4 stochastics >90, it is likely at least a small decline is coming. On the other hand, the GMI=4 and could turn Green on Tuesday. The QQQ has closed (dotted line) above all of the 12 daily Guppy chart averages. The key to the market’s trend is what happens during the next decline.
