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QQQ is up against a rising 15.2 lower daily Bollinger band and my stochastics indicator is very oversold too (not shown). These indicators suggest to me a bounce is imminent. Also, the fact that the QQQ short term up-trend is still intact also leads me to believe  a bounce is coming. Of course, these indicators could fail Tuesday. We are also heading into a pinch of the upper and lower Bollinger bands, suggesting to me a large move is coming. Our job as technicians is to react after a definitive signal has occurred.

I am quite defensive now given last week’s action. We need to see what the Fed does this week.  This is not the time for me to take on large positions on the long side. A good Fed announcement could lead to a strong close of the third quarter.

These stocks are on my watchlist of stocks recently on IBD or Market Smith lists, that hit an ATH on Thursday. They are sorted by c/lowest price last 250 days. CEIX and FIX are 2x their yearly lows. BAM is a recent IPO and traded above its green line but did not close above it on Thursday.

This weekly chart shows how CEIX has advanced for 6 straight weeks after its GLB. Note how it tracked its 4 week average.

End of quarter mutual fund window dressing period is coming up. Stocks that have advanced the most this quarter may be bought up by funds so that their quarterly reports to holders make them look like smart stock pickers. However, a government shut-down could torpedo such a pattern.