The markets failed to hold early gains after AAPL’s great earnings release. The QQQ short term up-trend lasted only 3 days. IBD now sees the market up-trend under pressure. The market appears very treacherous to me. I increased my position in SQQQ and I am gradually selling my longs. Once 4th quarter earnings are out there is little to propel this market higher. The QQQ remains in the downward sloping channel. The big question is whether support will come in again (for the 4th time) at the bottom of the channel, drawn in this daily chart of the QQQ.
A huge sign of technical weakness is that the SPY and DIA have now closed below their critical 30 week averages.
1 thought on “New $QQQ short term down-trend; will channel hold again?”
On the bullish side, small caps are acting well compared to market. I think, if we close below 100.51 on weekly, watch out below.