The oversold rally has begun. Is it the bottom or a dead cat bounce? No one knows. I am a trend follower. I will wait until the major indexes retake their 30 week averages and turn up in new Stage 2 up-trends and the GMI turns Green. I therefore remain on the sideline. Here are the weekly and daily GMMA charts of QQQ. QQQ remains in a Stage 4 down-trend and in a daily BWR down-trend. I have seen bear markets begin after the index returned to the declining 30 week average (red solid line). Then the real decline began.
Here is the 2020 bottom. I want to see a daily RWB up-trend when all of the short term red averages rise above the blue longer term averages. The greatest trader, Jesse Livermore, said it was his sitting tight and not his trading that determined his success.