Relief Rally Or Bull Market Continuation? $SPX $QQQ
Only if I had a crystal ball. As we stand this rally…relief rally or whatever you might want to call it we saw Volume dropped on both the Nasdaq and the NYSE. Advancing stocks led declining issues by a 2-to-1 ratio on the NYSE and the Nasdaq. However it can be easily said there was a lack of conviction on behalf of institution investors. We have not had a follow through day yet…and maybe we will. When investing we must take it day by day and have no opinions yet trade a complete plan.
My trading plan has me completely out of the market until the market proves itself to the upside. We have fallen from the highest high over the last 100 days and the 10 EXMA crossed below the 30 EXMA. We have had 8 distribution days which have clustered which has caused a great deal of internal damage to the market.
These reasons have us out of the market. We have not had a significant correction in such a long time I almost can not remember. However as being a trader for decades I know the risks to the down side can be horrific. Too many have forgotten this or maybe they are just a new generation of traders.