General Market Index (GMI) table

I am concerned that there were more US stock new lows than highs on Friday. In addition, SPY closed below its declining 30 week average. This could be a deepening Stage 4 down-trend, especially if it cannot close this week above it. IWM and DIA look even weaker. However, QQQ closed above its flat 30 week average. So which index is the leader? I think this week’s action should tell us. Meanwhile, I own a little GLD and IBIT (GLB last week).  I will exit quickly if weakness materializes. GLD has been nicely tracking my blue dot bounces, see daily chart. I explained my Blue Dot of Happiness indicator in my presentation last week to the Boston IBD meetup. You may sign up for the wait list for my future Masterclass with TraderLion here.

The GMI=5 (of 6) but look at how my most sensitive components in the GMI2 are weakening.

While we have had a nice rebound from the April lows, this weekly chart shows that SPY (as well as DIA, IWM, QQQ) still has a 10 week average below its declining 30 week average. During bull advances the 10 week can remain above the rising 30 week average for months. See also the weekly chart from 2016-2019. Until the 10 week crosses above the 30 week and the 30 week turns up, I remain very cautious and mostly on the sidelines. The May 21 Boston IBD Meetup is full. If you register here  you will receive a free recording of my presentation.

The GMI remains Green and at 6 (of 6) but QQQ is still in a Stage 4 down-trend.