Hi everyone, welcome! Let’s look at some weekly charts of the indexes.
Below is the Dow Jones (DIA) on the weekly chart.
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 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.
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.
Here’s QQQ on the weekly chart. We hit the resistance zone between 185 and 190, and I suspect that this will be the local high for this move up. I suspect we continue moving sideways or downwards the next couple weeks. Thanks for reading!
Hi everyone. QQQ hit below 170 before having a large bounce to end the week. The move is surprising, but I’m not convinced that this high price level will hold. If you plan to go short or sell your position, the resistance zone in the 185-190 price range looks like a good idea.
Welcome back. Let’s look at the weekly chart of QQQ.
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!
I think that QQQ will move into the high 160s or low 170s before any significant recovery. However, I wouldn’t be surprised if we bounced back into the 183-187 range first. If we do bounce back up to the mid 180s, this would offer a good short opportunity.
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.
Good luck, and see you next week like always 🙂