QQQ: is it still a case of bull flag ? and the good news is...
Quick Chart Reading on the QQQ's
the QQQ's opened today with a relatively large gap down - later in the day price action is shaping to be what looks like a tight spread
- for the optimistic ones (like me), if you really stretch the bull flag, we're still within a bull flag formation from the early Feb highs - a good sign is, the QQQ's seems to want to stay above the all-important 200SMA .. and the spread may even turn positive before the closing of the week later today.
- on the weekly chart, the recent weakness is combined with a decreasing volume .. so that's another good sign
- we also note that we're showing some greens on the MACD and the BSI on the weekly for the first time in a year. that's the best sign of a possible recovery - won't of course be anything immediate - will take time.
- also on the weekly, Is this the formation of a high "right shoulder" ?
i remain optimistic that this leg down won't be too long - if the 3 slow MA's (on the daily) keep their current "general tendency", we may be at a good place by early-to-mid may, where market goes into the slow summer.
the next 2 weeks are crucial for market direction - and may present great opportunities as the big names consolidate (if they do). Hunting season starts.
the QQQ's opened today with a relatively large gap down - later in the day price action is shaping to be what looks like a tight spread
- for the optimistic ones (like me), if you really stretch the bull flag, we're still within a bull flag formation from the early Feb highs - a good sign is, the QQQ's seems to want to stay above the all-important 200SMA .. and the spread may even turn positive before the closing of the week later today.
- on the weekly chart, the recent weakness is combined with a decreasing volume .. so that's another good sign
- we also note that we're showing some greens on the MACD and the BSI on the weekly for the first time in a year. that's the best sign of a possible recovery - won't of course be anything immediate - will take time.
- also on the weekly, Is this the formation of a high "right shoulder" ?
i remain optimistic that this leg down won't be too long - if the 3 slow MA's (on the daily) keep their current "general tendency", we may be at a good place by early-to-mid may, where market goes into the slow summer.
the next 2 weeks are crucial for market direction - and may present great opportunities as the big names consolidate (if they do). Hunting season starts.
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