One Index Bears Should Be Hungry For
I try and remain objective as possible.
I am in the bull camp, have been for the past couple of weeks, and still believe new ATHs are coming in the SPY sooner rather than later. But that doesn’t mean I can’t change my opinion or that I’m blind to potentially bearish signals.
Here’s an outcome that the bears should be hungry for.
First let’s take a look at the $SPY
An uptrend, above the April highs, making forward progress.
The $IWM also in an uptrend (stronger), well above April highs and making upside progress.
And now the $QQQ which is below April highs, in an uptrend, but stuck in a range and reluctant to follow it’s major index siblings higher in recent days.
What the bears want to see here is failure to breakout of this range, a roll over, and a lower high versus the April rally.
With objectivity in mind, taking the other side, if the QQQs can emerge out of this range with an explosion higher, then look out above.
This of course isn’t the end all be all signal, but it does represent an important group of stocks and therefore becomes an important range to have on your watch-list moving forward.
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