It takes a long time for the longer term trends to turn up. There were only 7 US stocks at ATHs on Thursday. If the QQQ short term down-trend ends Friday, I might nibble at TQQQ. However, I have found that about 25% of short term up-trends end within 5 days. My 10:30 weekly charts of the major market indexes are still weak. I would like to see the 10 week average cross above the 30 week average and the 30 week average to curve up for me to trust a significant new Stage 2 up-trend has begun. Look at this 10:30 weekly chart of SPY. In prior declining markets the indexes often rebounded back to the 10 week or 30 week average, only to begin a new larger decline. The 30 week average is still declining. Market declines often come after the earnings release period has ended. I do not predict bottoms. I only react after they have formed.
Thank you for sharing your knowlege Dr. Wish. So this could possibly be an exhaustion rally pushing SPX up to the 5800 levels best case, before a turnaround?
Not predicting, just reacting, good advice.