1/13/2019 Stocks rebound this week – charts point to a bit more upside next week. Still bearish for 2019.

QQQ Weekly 1_12_2019.JPG

QQQ, along with the SPY and DIA, are now well above the February lows.  Shorts are likely trapped now and may start to cover their positions. As a result, I think we will continue to move upwards towards the 170 level (another 5% up or so), until we start our next leg lower.

Since we’ve broken down below the February lows on high volume, I think we will move lower for 2019 and work our way down to 135 or 110.

SPY monthly 1_13_2019.JPG

Here’s the SPY on the monthly chart. The two levels of support are at around 215 and 180. 180 is a much stronger support level, and I think we could test 180 in 2019.


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