The more sensitive GMI-R is now up to 5, but the GMI is at 2. We are close to the critical point where this rebound will hit resistance and falter or break through. In a few days we will learn whether this down-trend can change to an up-trend. The QQQQ, now at 48.62, needs to close two days above 49 to signal a new short term up-trend.
5th Day of QQQQ Short Term Down-trend; QID and Cash
GMI and GMI-R unchanged. Tuesday was the 5th day of the new QQQQ short term down-trend. Own a little of QID, the ultra short QQQQ ETF. Still mainly in cash. Good time to be on the sidelines in my trading account.
4th Day of new QQQQ down-trend, T2108= 31%; I remain cautious and mainly in cash
We got the snap back rally from the extreme oversold level we had on Friday, as evidenced by the T2108 reaching 15%. After Monday’s rally, the Worden T2108 Indicator settled at 31%, well out of oversold territory. and the GMI-R rose to 2, because there were more new highs than lows (48 vs. 6 in my universe of 4,000 stocks). However, the QQQQ remains in a short term down-trend (4th day, D-4) and I remain largely on the sidelines in my trading accounts. When the up-trend resumes, I will wade back into this market on the long side.