The market closed strong on Friday, as AAPL broke out to a new high. Technology is where the action is right now. However, one caution flag is that the T2108 is now at 81%, very near to being in overbought territory. Last May, the T2108 reached a peak at 92%. Meanwhile, the GMI
KCI–A cup-with-handle break-out?
The short term up-trend in the QQQQ finished its 6th day on Friday. I like the fact that AAPL is holding up. We need to watch the leaders for signs of where the market is headed. I went through the new highs on Friday using the methodology I described last week. In doing so, I found a stock that appears top have broken out from a cup-with handle pattern. So, I am showing it below to provide my class with an example of this important bullish pattern, described by William O’Neil in his book (listed to the lower right).
Short term QQQQ up-trend in question
The QQQQ is going back and forth over its key 30 day moving average. Time will tell whether this new short term up-trend, now in its 4th day, will hold.