The market is so oversold with 87% of NASDAQ 100 stocks trading at or below their lower 15.2 Bollinger Band on Monday. Futures portend a bounce this morning. But I am going to cash, given the GMI is now at a Sell. This weekly chart of the QQQ suggests an ominous Stage 4 decline. The 30 week average (red line) has clearly topped out.
Today’s bounce may be caused by the mutual fund window dressing at the end of the second quarter. Once the quarter ends, early July could be nasty as earnings come out and everyone blames Brexit for their reduced earnings expectations for the rest of the year.