By: Jeff Cooper
Hit and Run Morning Stock Report: May 11, 2023
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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.