Apples & Oranges
I’m drawing a much different
conclusion to the weekly chart of
(
QQQ |
Quote |
Chart |
News |
PowerRating) than I am of
(
SPY |
Quote |
Chart |
News |
PowerRating). Basically, SPY has not
broken the symmetry of the downtrend. Meaning, it has not exceeded the size
of previous rallies in this downtrend in price size or percentage size.
In fact,
looking at the chart below of SPY you can see the last three countertrend rallies
were between 22 and 25%. Currently, the rally in SPY is at 20% and 15 points,
and facing major weekly chart Fibonacci price resistance. So, at these levels
I’m not taking any new long positions until we get resolution.
Now, on the weekly chart
of QQQ below you can see that we have broken the immediate downtrend as it relates
to size of countertrend rallies in point size and percentage size. That means
we could very well see a rally to the next “magnitude”. (see previous column
“Order of Magnitude”). That means we could rally an additional 15 – 20% and/or
up to 35 on QQQ.
Two charts of the same
time frame with very different situations.