Stock Market Technical Indicators & Analysis
The daily Guppy chart (GMMA) shows that the gold ETF has been in a down-trend. The short-term averages (red) are up against the longer term averages (blue). It remains to be seen whether GLD can break through this resistance around 157-158. The GMMA is composed of 12 exponential moving averages: 3,5,8,10,12,15 and 30,35,40,45,50,60.
Yes, the QQQ remains in a short term down-trend. Only time will tell if this rebound is a real end to the correction or just a bear trap. Typically, down-trends don’t end so suddenly, and without panic. But if the GMI returns to 4 or greater for two days, I will go long again. The important thing is to wait for a definitive signal of a change in trend. IBD still calls the market in a correction.
The daily Guppy chart of the SPY shown below shows that the S&P 500 stocks remain in a solid down-trend. Note that all of the short term averages (red) are well below the declining longer term averages (blue). Compare this pattern to that in the prior up-trend. The fact that we are still in a down-trend should be very obvious. When the red lines are back above the rising blue lines, it pays to be long and fully invested.
I remain in cash in my trading accounts. I transferred some of my university pension money from mutual funds to a money market fund. I think it prudent for me to take some of my most conservative pension money off of the table.