General Market Index (GMI) table

Critical week for techs and the $QQQ

@ 7:59 pm
GMI5/6
GMI-23/9
T210879%

Last week the tech stocks under-performed and many high yielding “safe” stocks faltered. This weekly chart of QQQ (the NASDAQ 100 index ETF) shows that the index is resting on its 30 week average (red line). A close below this critical support would be very significant. With AAPL reporting earnings on Tuesday and FB on Wednesday, we will soon see if the QQQ can hold. The QQQ is basically at the same level it was about a year ago. The pattern here could be seen as a head and shoulders top. If the 30 week average turns back down, there could be a significant  Stage IV decline.

Screen Shot 2016-04-24 at 7.35.34 PMWhile the GMI remains strong at 5 (of 6) the more sensitive and short term GMI2 is now at 3 (of 8).

Screen Shot 2016-04-24 at 7.34.15 PM

Earnings begin; will $QQQ break out of its channel?

@ 6:12 pm
GMI4/6
GMI-24/9
T210875%

Will the market rise with earnings coming?  While reporting companies can blame their past weak results on the strong dollar, maybe they will forecast better results this quarter, with the dollar weakening. The QQQ is in a tight channel.  If this channel fails to hold, I expect support at the lower 15.2 Bollinger Band, around 106.44.  If this level were to fail, I would expect more weakness. But the rising 30 day average (red line) is an important sign of strength.

Screen Shot 2016-04-10 at 6.02.08 PMThe GMI is at 4 (of 6) and still on a Buy signal.

GMI04082016