10/19/2019 Stocks stay mostly flat for the week due to the sell-off on Friday. I wouldn’t be surprised if the selling accelerates next week.

Hi everyone! Welcome back. 

QQQ Weekly 10_19_2019.JPG

This chart should be very concerning for bulls. Each time the index flirts with new highs, the RSI is lower – meaning the momentum has slowed down. Another move upwards is not unreasonable, but I think we will see a lot of selling beginning next week, or whenever we get anywhere near 195 again. 

If I take this trade, my short target is the low to mid 170s, with a stop loss roughly 6 dollars above my entry. 

 

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