IBD says Tuesday was a follow through day and marked the end of the correction. I will wait for the GMI to turn positive before I re-enter the market. I still do not trust this rebound yet.
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17th day of $QQQ short term down-trend; SPY still a broken up-trend
Rebound continues, but for how long? Look at this daily chart of the SPY. SPY is way below the long term trend line (blue line) that it recently broke. We now have a lower bottom. Will we get a lower top? Stay tuned…….
15th day of $QQQ short term down-trend; skeptical of rally
The Worden T2108 has held and is now back to 20%. It is very important to study carefully the quality of the next rebound. I suspect the rebound will not break the current down-trend and that the decline will resume with a vengeance. If the major indicators rebound to their 30 week averages, I will transfer some of my university pension money out of mutual funds and put it in money market funds. It will take a lot for me to trust any market rally. This decline is still relatively small and I have not seen enough panic to suggest a sturdy bottom.