The monkey wrench in the works for higher highs continues to be a falling Summation Index. A look back at history shows that when the Summation Index rises above 1000 and begins to roll over, you are likely to get some kind of correction but not always as sometimes the market just ignores these signs of underlying weakness and eventually the Summation Index bottoms and reverses. However, until the Summation Index does bottom and reverse there is the potential for some kind of correction. Some of these corrections signaled by the Summation Index have been relatively minor while others have lasted weeks and months so the Summation Index needs to be monitored from now until if reverses.
The QQQ's have been the driving force behind this rally and they got hammered on Friday for reasons I mentioned in my post about IBB. The RSI on the 60min chart of IBB dropped to 28 on Friday and so is extremely oversold in that time frame and as a result IBB should bounce on Monday, or famous last words. The RSI in the 60min chart of QQQ only dropped to 35 on Friday and so is not as oversold as IBB but if IBB bounces and if SYMC doesn't drop another 13%, then the Q's should also bounce and if the Q's do bounce then the rest of the market will follow along. So keep an eye on these three early Monday morning for clues as to which way the market is likely to head on Monday as well as the rest of the week.
Be careful and GL
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.