This new QQQ up-trend is uncertain for me until it reaches the 5th day. Once a short term trend lasts 5 days it is much more likely to continue. The adviser poll results in IBD show only about 4% more bulls than bears. Having so many advisers being bearish is a sign of possible strength for the market. If we could get more bears than bulls, we might have a true bottom of the decline in place. Note that the T2108 is at 31%, back into neutral territory. I remain in cash.
Month: September 2011
Day 1 of new QQQ short term up-trend
While Wednesday was the first day of the new QQQ short term up-trend, I normally want to see a new trend last for 5 days before I become confident in it. The longer term trends remain down and I am cautious about this rally’s ability to break through resistance. I would like to see the GMI rise to 4 before jumping back in on the long side.