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Upswing has begun, time to wade back in

@ 7:00 am
GMI4/6
GMI-25/9
T210861%

With the QQQ now back above its 30 week average (solid red line), I am ready to reenter this market. The QQQ, composed of tech stocks, is outperforming the SPY and DIA.

Friday was the 4th day of the new QQQ short term up-trend. AAPL has emerged as a leader again and there is too much bearish market sentiment.

The GMI is now back to 4, reflecting the growing strength in the market indexes.

Check out this weekly chart of AAPL.   It is back above its 10 week average (blue dotted line). Click on chart to enlarge.

2nd day of QQQ short term up-trend; many stocks extended short term

@ 7:00 am
GMI4/6
GMI-25/9
T210853%

A lot of stocks (63% of Nasdaq 100 stocks) have their stochastics in overbought territory.   While I want to wade into this market, I think it best to wait a few days to see if the market retraces a little. The QQQ daily chart below shows the 10.4.4 stochastic at 87% and that this index is nearly touching the upper Bollinger band, at 91%.   Both of these statistics   are at levels where the index has topped out short term. Click on chart to enlarge. The SPY and DIA are showing similar extreme readings on these statistics.