While the new $QQQ short term up-trend has reached Day 5, I am concerned by the daily chart. It looks like a possible head and shoulders top pattern is forming. I labeled the head and shoulders. Note also the recent red volume spikes on down days. The key for me will be whether QQQ can climb above the right shoulder, at 578. If it should instead decline towards the neckline, drawn in pink, and then close below it, I think QQQ could retrace to its recent green line top around 540. Note that neither SPY or DIA are showing similar topping patterns. In fact, $DIA recently had a GLB! (see daily chart)
Note the terrific volume on the day of the breakout. Is it also a cup with handle?
And SPY’s recent rise took it to an ATH!
$GOOGL held up beautifully in Friday’s decline, reaching an ATH and showing relative strength. Note its recent GLB. Must not close back below green line @207.05.
Meanwhile the GMI remains Green and registers 6 (of 6).
