11th day of $QQQ short term down-trend; on sidelines


This week it will be very difficult to get an idea of the market’s near term trend. There may be some strength from mutual fund end of quarter/year window dressing. But the QQQ short term trend count is D-11 and the GMI remains on a Sell signal. IBD calls the market up-trend under pressure. The market indexes are still bouncing from a recently oversold situation and it remains to be seen how far the bounce will go. The QQQ,  at 112.59, faces considerable resistance around 114.  There does not appear to be much more room to climb, unless the index should burst through the formidable resistance. Under these circumstances I find it best to stay mainly on the sidelines and to wait for a sign of a resolution of the battle between bears and bulls. It may take until early January to get some clarity. What a nice time to relax and enjoy my academic between semester vacation.


Leave a Reply

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