GMI declines to 2; IBD announces correction; bounce coming?


Thursday marked the first day of a new QQQQ short term down-trend.   And I noticed that IBD now thinks the market is in a correction.   The up-trend lasted 51 days.   In the past, short term down-trends have tended to be of much shorter duration.   A lot of stocks I watch now have low stochastics and are oversold.   In fact, 38% of the Nasdaq 100 stocks fall into oversold territory.   So, with this morning’s futures much higher and option expiration coming tomorrow, we will get a bounce here, but for how long?   I remain long in my pension mutual funds, but am mainly in cash in my other accounts.   I will wait for next week to determine my next   move.

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