Stock Market Technical Indicators & Analysis
QQQ and SPY had large volume declines from ATHs, distribution days, on Thursday. Only 19 of the Nasdaq 100 stocks rose, the least since 14 on June 17. There were 80 new yearly lows among 6,217 US stocks, the most since 90 last April. I am not taking on more risk and may raise stops on Friday. Here is the daily chart with illustrative arrows for QQQ. The strong recent up-trends in these indexes may be ending.
The Blue Dot of Happiness Setup is explained in my presentation at the 2025 TraderLion Conference last Sunday. This setup is an oversold bounce after a recent ATH. See if the bounce holds, like the one in June. Earnings are expected August 7.
The blue dot also occurred with a bounce up off of the 21 EMA and the lower 15.2 Bollinger Band. I suspect that when QQQ does finally close below its daily 8 EMA it will signal some short term weakness in the up-trend. Note the possible tradable buys when QQQ bounced up off of its 8 EMA. My TC2000 scan finds such occurrences. When Richard Moglen and I create our online Mastercourse, these setups will be built into Deepvue. Stay tuned here to receive course announcements….
As I said in my TraderLion presentation, an equity tracking the daily 8 EMA often tracks the 4 wk moving average, see weekly chart. Red dotted line is 4 wk avg.
