Due to the significant duration of the current rally it is not prudent to fight the overall market trend. But it is a good time to look for shorting opportunities, or a pullback for long entries, as the market is likely to correct soon.
QQQQ's ascent pattern since the beginning of September suggests that a lot of favorable news has already been discounted by traders. Could a bout of selling on positive news be in store for those who have enjoyed a nice ride up so far this month?
The stock market indices started the week off with a bang and followed through brilliantly on last week's rally, gapping up from the get-go and exploding early on short covering.
The Ultra Short Yen Proshares (YCS), which has been in a major downtrend since May of this year, is showing distinct signs of what may be a trend reversal.
The chart for the Nasdaq 100 index indicates that the 1980 level is an area that could be a precursor to a temporary pause in the almost uninterrupted ascent seen during September.
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