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The markets failed to hold early gains after AAPL’s great earnings release.   The QQQ short term up-trend lasted only 3 days. IBD now sees the market up-trend under pressure. The market appears very treacherous to me.   I increased my position in SQQQ and I am gradually selling my longs. Once 4th quarter earnings are out there is little to propel this market higher. The QQQ remains in the downward sloping channel.   The big question is whether support will come in again (for the 4th time) at the bottom of the channel, drawn in this daily chart of the QQQ.

A huge   sign of technical weakness is that the SPY and DIA have now closed below their critical 30 week averages.

The QQQ reversed down from resistance on Tuesday.   With AAPL rebounding after hours it remains to be seen whether this strength will rescue the QQQ on Wednesday. The SPY and DIA are much weaker. Wednesday’s close of the QQQ will be very important to discerning the short term trend of this market.

Maybe I should go fly a KITE.

Tuesday night we learn whether AAPL’s earnings can lead the QQQ through resistance.

Meanwhile the bio-techs continue to show strength. My readers know that I rarely buy cheap stocks. I do make an exception when my extraordinary stock picker buddy, Judy, tells me about a small, young company that has a promising product. Enter NVIV and its spine tingling surgical implant (pun intended). She, and then I, have been nibbling at NVIV. The company has created a medical device that has shown some early unexpectedly good results. The company also has a very good medical pedigree. NVIV is very speculative, but when I look at the volume spikes on this daily chart, it is clear that there is some major buying interest. At $2.09 per share, it is probably a better use for my money than buying a lottery ticket…..