With SHY falling, short term interest rates are rising. This makes sense with the Fed reporting they are ready to enhance tapering of bond buying and to raise rates.
With the GMI=4, it could flash a Green signal with another day above 3.
See my presentation to AAII Chapter at RTI, Tomorrow, Sat 10 AM, EST. Register free: https://us02web.zoom.us/webinar/register/WN_LYUNGn1mT7-yIttWUVI_-A
Link: https://us02web.zoom.us/webinar/register/WN_LYUNGn1mT7-yIttWUVI_-A
Blog post: How the market responds to the CPI number on Friday will reveal much about the market; Is $QQQ setting up for H+S top? See daily chart..
A head and shoulders top is a significant technical pattern. It is possible that QQQ is setting up for this type of top. The fact that the neckline (purple line) is sloping down also signifies more potential weakness. On the other hand, if the right shoulder is exceeded, it is off to the races. It should be interesting to watch. With the Fed meeting next week, volatility should be big. One bullish factor is that the Investors Intelligence poll of investment newsletters shows only 40% bulls. Tops are likely when there are more than 60% bulls. Bears are only 25%. When there are more bears than bulls, a rare occurrence, the market bottoms.
