This is a classical flat signal but it has worked well on buys for 5 years.
Performance for xCF is summarized below:
The current discussion, is mostly centered on the short term implications of the big three chart formations.
QQQ
The question is whether the last 10 days or so is a rectangle, or a legitimate move to higher highs. QQQ looks the best of the three.
SPY
This is a little worse, but not too bad. At the moment it looks like a consolidation triangle that could move higher. On a move higher, the pattern tends to degenerate into a rectangle,
IWM
As usual, this thing is clearly in third place. Today’s action looks weak, especially along with yesterday’s questionable up move from the 18 day MA.
My guess, at the moment, is that some traders will wait for tomorrow rather than risking the overnight.
