QQQ Daily, 04/11/2014: A-B-C Fib extension finished.
The A-B-C down extension finished on Friday (they don't have hit exactly) and when this happens you have to expect something else. I expect Q's will bounce and perhaps rise to the upper trend line. Should this bounce materialize, then it could last up to a week but I do believe the bounce will fail and the Q's will head south again, taking out the important swing low at 83.74.
We have positive divergence in the Sto, RSI, & CCI plus the Aroon Oscillator, not shown, is at -100, which is oversold. In the 60min time frame, the RSI for the Q's is at 29 so is showing oversold. And, also in the 60min time frame, the RSI is also showing positive divergence.
All of the above suggests the Q's will bounce and if the Q's bounce then so will the other indexes. While I do think the Q's will be contained within the confines of what may ultimately prove to be a down trending price channel, if the Q's can break out of the channel at around 87, then I'm wrong in my assessment and the 5-year rally should resume. But until I see a convincing break out of this channel, I will remain cautious and flat this sector.
All IMHO and subject to change without notice.
GL in the week ahead.
We have positive divergence in the Sto, RSI, & CCI plus the Aroon Oscillator, not shown, is at -100, which is oversold. In the 60min time frame, the RSI for the Q's is at 29 so is showing oversold. And, also in the 60min time frame, the RSI is also showing positive divergence.
All of the above suggests the Q's will bounce and if the Q's bounce then so will the other indexes. While I do think the Q's will be contained within the confines of what may ultimately prove to be a down trending price channel, if the Q's can break out of the channel at around 87, then I'm wrong in my assessment and the 5-year rally should resume. But until I see a convincing break out of this channel, I will remain cautious and flat this sector.
All IMHO and subject to change without notice.
GL in the week ahead.