Stock Market Technical Indicators & Analysis
This week is critical for telling us whether QQQ will hold. It remains in a Stage 2 up-trend, above its rising 30 week average. But it may retest its last green line break-out at 637.01. A weekly close below that level would be a major sign of weakness.
A GMI of 2 is too weak for me to trade growth stocks now. The weekly 10.4 stochastic is now down to 30. A value above 80 is a sign of a strong up-trend. The post-earnings period could be very bad. Cash is king right now.
Modified Guppy chart tells the story. Best time to trade QQQ type stocks is when the index is in a RWB up-trend with all Red shorter term averages climbing well above the Blue longer term averages with a White space between them. The RWB pattern was evident from mid-April to early June and trading break-outs in tech stocks worked very well for me. The dotted line shows the daily closes. In a solid up-trend it leads all of the averages higher. The dotted line is now declining below all of the averages. When we get a close above all of the averages, and a RWB, we might see a meaningful change in trend.The market’s behavior reveals all.
Modified Guppy charts also work for stocks!! Before I buy or sell, I always check out the modified daily Guppy charts.
QQQ might bounce this week but still looks technically weak. Last Friday it did have a blue dot signifying an oversold bounce. Note the 30 day average, solid red line, is curving down, a major sign of weakness.
NFLX has been in a daily BWR decline since May. Always monitor the daily modified Guppy chart.There are 12 exponential averages and one average=1 to show daily closes as a dotted line. The dots show daily low prices.
The GMI = 3 and the GMI2=1
