QQQ weekly look
The weekly QQQ 3/10macd is showing the potential for a 4c-4d criteria setup (essentially a bear flag). Worth noting that the slow line is now negative (which often precedes a 20- & 50-MA crossover) and price is now under the 50-period moving average (which makes a stronger case for the 20- & 50-MA crossing). This year we've seen two very symmetrical cycles of around 24-weeks, and as it stands we're in week 12 (mid-way) of what could be a symmetrical corrective wave.
We can compare the above 3/10 macd criteria to that of July where we saw the slow line go negative. The glaring differences being the following;
- Though price was working within the 20- & 50-MA window we saw green candles and price closing near the upper range of that 20/50-MA window.
- When looking at the potential 4c-4d continuation criteria we're looking for a bear flag pattern, that's not what we saw in July.
- The Daily chart showed a channel (symmetrical cycles), compared to the current daily chart where we see a prior double top and price at the bottom of it's "M"-pattern.
XLF has shown "strength", but the weekly momentum hasn't really reflected it, instead showing the 2b criteria which often highlights a 3-pushes to a high pattern
I would post more charts, but they're really showing about the same thing as the two above. Sector-ETF's, index ETF's all showing weekly weakness.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.