QQQ is the best major ETF to look at for market direction lately because it is below it’s high,
Yesterday, QQQ rallied from the 50 Fib line – halfway between the Feb high and March low – to the 38.2% line, but it didn’t quite make a two day high. This morning it has dropped back to the 50% line. A stock has better chances of taking out a price that is closer to the current price than one further away. That can be convincingly demonstrated even with crappy development tools.
An important area to watch are the lows of the reverse shoulders of the bottoming formation at 310-311. Even a break of the 297 low will not change the overall positive strategic picture, an investor doesn’t want to be over invested here because money is needed to buy at lower prices.
It should go without saying that investors should be light on couch potatoes here and heavier in smokestacks.