How far will this bounce go? Below is an updated chart from AAPL showing that it has broken down out of the channel I wrote about on 1/20. Note the volume spike. When they shoot a leader like AAPL, what will happen to lower quality stocks?!
GMI correction–Sell signal was one day earlier, on 1/27; IBD: market in correction
I have been unable to retrieve the IBD mutual fund chart from their site and had to manually create the 50 day moving average tonight. In doing so, I found that the index closed below its 50 day average starting on January 24. This reduced the GMI to 2 on that day and produced a Sell signal a day earlier, on January 27. Also, IBD has now called the market in a correction. Wednesday was the 3rd day of the new QQQ short term down-trend.
2nd day of $QQQ short term down-trend; mainly in cash
The GMI has just issued a Sell signal. I am mainly in cash in my trading accounts with a small position in SQQQ. I will buy more SQQQ if this down-trend can last 5 days (through Friday). However, as this daily chart of the Dow 30 shows, it has just bounced after five straight days down and could retrace back to around 16,300 before resuming the down-trend.
