The GMI turned Red at the close on October 12. Since then the QQQ has declined -2.87% along with 64% of the NASDAQ 100 stocks and 67% of the S&P500 stocks. Meanwhile the SQQQ has increased +8.8%. I rest my case.
But beware–the put/call ratio=1.18.
QQQ
4th day of $QQQ short term down-trend; mainly in cash; but $SQ not so square!
The leaders are breaking down. The DIA and SPY have now closed below their 30 week averages. Only 30 stocks hit a new high while 201 hit new 52 week lows on Wednesday. This is not a market to go long growth stocks near new highs. Time for me to be in cash or short in SQQQ.
However, SQ was one exception to the carnage. It released some good fundamentals and is worthy of monitoring. Note the large black up volume spikes on this daily chart.
P/C ratio= 1.22 and $QQQ below lower Bollinger Band–expect a bounce
With the put/call ratio an extremely bearish 1.22, I expect a bounce on Wednesday. Also, note that on Tuesday the QQQ traded below its lower 15.2 Bollinger Band. The four most recent times it has done so, shown in the daily chart below, it was at a short term bottom. Check it out.
