Blog Post: Day 42 of $QQQ short term down-trend, it may end Friday; However, longer term trends remain down, see 10:30 weekly chart of $SPY and my thoughts
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.
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