The Sunny Side of the Street

Figure 1: Intraday 15-minute QQQ

In yesterday's commentary I said:

"The most likely scenario is to test the top of the box at 28.31 and then fall back down to the upsloping trendline."

Today's action on the QQQs did just that, but didn't quite make it to the 28.31 level.  The QQQs popped up to the 28.06 level right after the open, and only stayed in that area briefly.  (Figure 1)  After the pop up, the QQQs fell back down to the mid_Sunny_Bands, but didn't really get much lower.  In fact, the level they fell to (about 27.50) was the high range for the 23rd and 24th--thus support.  Basically it was yet another "do-nothing" day.  There was next to no chance of successfully catching and profitably exiting today's market.

Figure 2: Daily Dow

The Dow closed the day at 8503, not quite to the 8511 level I have as resistance on my charts (Figure 2).  I am still anticipating the test of 8511 to turn out negative, but only the market's action will tell us what is really happening.  If the market decisively breaks above 8511, next stop will be 8648, so be on your toes and ready to get long, even while currently short.

Some commentators are calling this "strength" and saying the market is going up strongly.  I don't see it that way just yet.  It may turn out that way eventally, but for me, as long as we are going sideways, that's all I can say--we are going sideways.  It doesn't really look like "up" yet. 

I still stand by my previous commentaries watching for the markets to start a trek downwards in the near future.

Nevertheless, if any of these 3 markets I report on breaks above the "yellow box" tops, it is indication to change our tune and watch for upward movement instead.

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