QQQQ Short Term Down-trend completes 7th day; Thursday drop genuine?


The QQQQ down-trend continues, as the index failed to break through the critical area I monitor. It makes me wonder whether Thursday’s huge decline really reflected the possibility that some heavy hitters decided that this market was toppy and wanted to exit.   The action of a few large players could have set off a selling stampede to preserve profits, given that the market had been going up for 3 months straight.   It remains to be seen whether this short term down-trend will turn my longer term trend indicators down.   I am   sitting comfortably on the sidelines, mainly in cash, but will begin to focus on some shorting. (See my reply to a comment yesterday about the use of stop loss orders.)

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