6/30/2019 Stocks slightly down for the week. Futures point to gap up open on Monday, but I think we are due for a downwards correction on the weekly chart. Good opportunity to sell or go short.

Hi everyone, welcome! Let’s look at some weekly charts of the indexes.

Below is the Dow Jones (DIA) on the weekly chart.

DIA Weekly 7_1_2019.JPG

Although we have made new highs and look to gap up, this represents a good shorting opportunity since we have a relatively large weekly RSI divergence. The index has made new highs but the RSI has not followed – suggesting weakening momentum. Because of this, I suspect DIA retests the 245-250 zone (the rectangle in the chart above) in the next few weeks. 

QQQ weekly 7_1_2019.JPG

QQQ is far weaker than DIA since it didn’t even make a new high. I suspect the indexes drop together – with QQQ retesting the high 160s to low 170s in the upcoming weeks. 

 

 

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Stocks jump and Dow Jones and S&P500 break to new all time highs.

Hi everyone! Stocks jumped unexpectedly this week, and the move looks like it will continue since new highs have been broken. However, QQQ has not broken to a new high yet as you can see in the weekly chart below. Something to watch out for is the bearish divergence on the weekly chart. 

QQQ weekly 6_23_2019.JPG

6/3/2019 Selling accelerates, and futures down for Monday open. Looking like more downside.

Welcome back. Let’s look at the weekly chart of QQQ.

QQQ Weekly 6_3_2019.JPG

There’s not much new to add, but it looks like this could be the start of a larger move downwards. This is a good level to start looking for a time to buy since we could bounce. My guess is this is a larger correction downwards, so I personally won’t be buying any here. 

See you next week! 

 

5/18/2019 Stocks stay volatile and close lower for the week. This looks like a fake breakout to new highs and I suspect lower prices in the following few weeks.

Welcome back to my blog!

I was surprised by the violent upward swings this week, but the bears still won. We have confirmed the trend line break and have broken back below the 185-186 level – hinting at a false breakout. Because of the false breakout, I suspect selling will accelerate or speed up. In case I’m wrong, a stop loss near 188 would be a good idea if you are short. 

QQQ weekly 5_18_2019.JPG

Good luck, and see you next week like always 🙂