Stock Market Technical Indicators & Analysis
Another weak day on Wednesday could turn the short term trend of the QQQ down. The QQQ failed to hold its 10 week average. I sold my TQQQ and am on the sidelines. I do not like the fact that the 30 day average (red line) is trending down. Click on chart to enlarge.
QQQ regained its 10 week average but we are not out of the woods yet. Still, the QQQ held steady on Monday, perhaps reflecting continued strength in AAPL. Here is an update of last night’s daily chart of QQQ. The QQQ closed Monday just above the top channel line. Meanwhile, the GMI fell below 4 again.
The new short term up-trend must last 5 days for me to trade it with a significant position. About one quarter of short term up-trends since 2006 end within 5 days. This daily chart of the QQQ shows that the ETF has closely tracked between two green trend lines. For this short term up-trend to continue, the QQQ must break above and stay above the higher line early this week. If not, it is likely to re-test the lower trend line, which would be a relatively large decline. Stay tuned….
While the GMI is at 5 and on a buy signal, the QQQ is just below its critical 10 week average.
