Stock Market Technical Indicators & Analysis
IBD has just changed its market outlook to confirmed up-trend. With the GMI on a Buy signal since the close on February 28, I am adding long positions. This weekly chart shows that the QQQ head and shoulders pattern failed to develop. A lot of stocks are breaking out. With the T2108 only at 61%, this market is not extended.
My indicators have now converged on the bullish side. The GMI and GMI-2 are each 6 (of 6) and the QQQ began a new short term up-trend. However, IBD still sees the market in a correction. Still, I am wading back into this market on the long side. Too may stocks I am watching are gaining strength. I bought some TQQQ on Monday and will buy more if the QQQ continues to rise.
The GMI is now on a Buy signal even while the QQQ just reached the 7th day of its short term down-trend. There were 240 new highs in my universe of about 5,000 stocks and 87 new lows on Friday. I am waiting to see whether the QQQ can mount a real rally or whether it will complete a head and shoulders top. Meanwhile, the DIA and SPY are in strong RWB weekly up-trends and approaching their all-time highs.
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