Waiting to see if this down-trend holds.
3rd day of $QQQ short term down-trend; IBD: correction here; Small caps ($IWM) in trouble
A close of the QQQ below 94 would be a serious sign of weakness. QQQ closed Tuesday at 94.59. IBD has just labeled the “market in correction.” Maybe they heed the GMI signal??!! I am mainly in cash and short the market in my trading accounts.
Note this ominous chart of small cap stocks reflected in the IWM ETF. There is a double top (horizontal red line), a decline below the critical 30 week average, and a lot of red spikes of high volume on down weeks. What is this chart telling us about the market?
2nd day of $QQQ short term down-trend
With the GMI registering less than 3 for two days, it flashed a Sell signal Monday night. Some Sell signals have been fake outs before. I am waiting to see if this new QQQ short term down-trend can last for 5 days before I go short the market in a big way.