Dear Readers, We need an opening salvo that will announce the move lower. While we have had sizable declines in R2K and QQQQ the Big indices SPX and INDU are still holding up. Whether the decline is going to be a slow or fast moving, there is always a need for an opening Salvo, a big move down(2-3%) that starts it. So far not there. Now, we could/should get it today/tomorrow or we start moving up again, as the BUY Pressure builds. Gold still meandering, Energy pretends being strong, but shows signs of sluggishness and Bonds are still stuck. Currencies are proving the turnaround up into 23/5 +-2 days.
2 comments:
Boris
In looking at the chart it seems the buy pressure on QQQQ's is high and sell pressure is low and this would anticipate a rally. Maybe long QQQQ's and short SPX. Am I misinterpreting your pressure charts?
Thanks
Howard
Dear, H very perceptive, I and when short term signals confirm the impending rally ( remember market could take a big dive before that happens) Q's may have a more powerful move up than SPX. On the other hand, while the above statment would have been undebatable in the weeks preceeding the May top, it could be a bit more risky these days.
Good Trading Dear H.
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