This may be related to the unusual strength in biotech ETFs. Check out XBI, BIB, LABU. IBBQ
Dr. Wish
Blog Post: Day 8 of $QQQ short term down-trend but GMI=4 and could turn GREEN on Wednesday; $QQQ back above all 12 daily averages in modified Guppy chart, see also RWB uptrend in $XBI.
The dotted line is the daily close. It has now retaken all 12 of the short (red) and longer term (blue) exponential averages. Another strong day on Wednesday might turn the GMI GREEN. The QQQ short term trend remains down but could reverse later this week. The AI stocks have not recovered but many other stocks are strong. It could be that the overbought AI stocks are being shot first and the other stocks will fall after a brief rise to overbought. I sold my SQQQ and will buy TQQQ if the QQQ short term trend turns up. In addition, biotech stocks remain strong. Check out INSM and the biotech ETF, XBI, see its RWB up-trend in its Guppy chart below.
Blog Post: Day 6 of $QQQ short term down-trend; 74 US new highs and 97 lows; Friday’s late bounce held $QQQe above its 30 week average, but major indexes closed below their critical 10 week averages; GMI=RED and cash is king; See weekly 10:30 chart of $QQQ and my explanation.
This weekly 10:30 chart of QQQ shows it to have closed (gray line) below its 10 week average (dotted line) on above average trading volume. Compare this pattern to the decline last March and April. The question remains whether QQQ will retake this average or decline to the 30 week average (red solid line) or to the prior green line. A close below the 30 week average and if the red line turns down would give me a major Stage 4 sell signal and the likely beginning of a major decline. Since 2000 this signal got me out early from all major declines. For now, I prefer to be mainly in cash with a little SQQQ in my trading accounts. I only go to cash in my university retirement accounts when the markets are in a Stage 4 decline.
The GMI is 1 (of 6) and on a RED signal.
