Hi everyone. Market indexes have flashed a very big sell signal this week despite only dropping a little. The momentum indicators show that momentum has slowed, and we have also hit a double top. This is a conviction sell or short with a price target roughly 8-10% below the current high for a long weekly swing trade.
I haven’t traded for over a year, but I will likely take this short trade here myself. I’ll keep you updated.
Above are the weekly charts of the indexes – notice how they all look more or less the same. I hope you all enjoy the rest of your weekend. See you next week like always!
QQQ generally outperforms the market since technology stocks like Apple, Facebook, Microsoft and Amazon have been doing very well relative to the market. Thus, it is interesting when QQQ is significantly weaker than the Dow Jones and S&P500.
Here’s the weekly chart of QQQ. Notice the bearish divergences (same or higher highs, but lower RSI). I’ve circled the price level I think we are likely to retest.
Here’s the daily chart of QQQ. I’ve highlighted the breakout to the upside. QQQ is still near resistance towards the top of the trading range, so I would avoid buying or adding on to your current positions.
See you next week!
Hi everyone, I hope you have a great Labor day and are enjoying your weekend!
Here’s QQQ on the daily chart. Notice how the index has faced resistance at the top line multiple times now. I suspect QQQ along with the other major indexes move towards the bottom of this trading range in this upcoming week. For QQQ, that corresponds to the 180-182 range. DIA and SPY (the other two major indexes) look a little stronger, but are bouncing off the top of their trading range on the daily chart as well.
Hi and happy Monday. Stocks dropped quite a bit on Friday, and it looks to continue into next week. My short term target price for QQQ is still the low to mid 170s. I will stay bearish until then.
Happy Sunday, I hope all is well!
There’s no change to my bearish forecast for the next few weeks. Something interesting to note is that optimism is at an unusually low level, meaning we will likely bounce upwards. Either way, I think we move lower – Below is the weekly chart of QQQ.
Hi everyone. During the last few weeks I mentioned that QQQ would likely drop to the 170-175 level before we move higher. During an after hours session earlier this week, QQQ actually did hit at or near the 175 level. Take a look at the weekly chart of QQQ below.
Notice how we are still coming off a weekly divergence (higher high for the index in terms of price, but a lower RSI for the most recent peak), so I still expect QQQ to move towards that 170-175 support level. Since we are still in an uptrend, buying instead of selling is what I prefer when I trade. Instead of selling or going short here, buying in the low 170s looking for a bounce back to the low 190s seems like a more logical move.