New $QQQ short term down-trend; skeptical of any rebound


IBD switches back to calling the market in a correction. The GMI, however, has remained on a steady Sell signal since December 10 and was not fooled by the end of year volatility. Monday’s action created a huge gap down with the index trading below its lower Bollinger Band. The market closed near its high for the day and the retracement has likely begun. I suspect the market may move up and fill the gap, but I remain skeptical of any near term rally. A lot of technical damage has been done to this market and the market leaders have been wounded. It felt great to watch this decline from the sidelines, in cash.


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