The markets bounced this week, and are now hitting some resistance. I still favor a big move lower in the next 3-4 weeks.
The weekly chart of QQQ has a hammer, and this is considered bullish. I will flip bullish from bearish if we close up next week. At the minimum, I expect we will test the 160 low before moving higher if we do continue to make new highs.
Chinese stocks also had a strong bounce this week on heavy volume. This is a very good sign for bulls. I still favor another leg lower, but if we close up next week, I don’t think that will be the case anymore.