GMI: 2; GMI-R: 2; 8th day of QQQQ down-trend; Stage 4?

The GMI and GMI-R are back to 2. There were 45 new highs and 279 new lows in my universe of 4,000 stocks on Friday.  The QQQQ is in the 8th day of its down-trend.  I am mainly in QID and hedged in covered calls on some of the strongest IBD100 growth stocks. The QQQQ is only 0.32 above its declining 30 week average (see weekly chart below). If the QQQQ closes below its declining 30 week average it will confirm a Stan Weinstein Stage 4 down-trend typical of bear markets. 2NDLEGqqqq

The SPY and DIA have already done so. Only 21% of the Nasdaq 100 stocks closed above their 30 day averages; the last time it was below 21% was during last March's decline.  It's beginning to look like the rise since last March was a retracement of the decline from the October 2007 top, and that a second leg down is beginning. The Worden T2108 indicator is now at 23%, still above the extreme low levels reached at the bottom of most declines.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.