By: Jeff Cooper

Hit and Run Morning Stock Report: May 11, 2023

Yo Yo

The market is discombobulated and splintered.

The double N R 7 Days from Monday and Tuesday telegraphed Wednesday’s Yo Yo.

Yesterday we tweeted an hourly SPX downsloping trend channel.

The index broke out on the open, broke the downside mid-session only to recover

And rally break back out to the topside of the channel testing the morning highs.

The market is splintered: the QQQ is upsloping while the IWM is hovering near the lows of the year.

“The year to date return through April 26 in the SPX 500 was 5.13%. Just eight stocks contributed 5.57% to the 5.13% total return: META, AAPL, AMZN, NFLX, GOOGL, MSFT, NVDA and TSLA.”
-Bianco Research.

A weekly QQQ from the all-time high shows a close-only trend line was hit this week.

Paralleling a line off the closing weekly lows and the intra-week lows creates a perfect trend channel.

At the same time, we have a Time/Price square-out in QQQ:

This week squares  324/325, a corner number, and corner numbers on the Square of 9 Wheel are considered naturally stronger support or resistance.

This is because all the corner numbers on the number grid represent the square or half-square of numbers.

In this case 18 squared is 324.

We also have a divergence between the QQQ itself and the NDX Cumulative Advance/Decline Line which is often portends a change in trend.

The above is within the context of our potential key turning point, May 17.

But…it’s always + or – as is the case with any Yo Yo.