Analyzing the Q’s

Q’s are the leader.

They bottomed on a Time/Price square-out in late October.

This is because the all-time closing high was 404 on November 19^th 2021.

This was right into our turning point date of November 21/22.

404 is 180 degrees straight across and opposite October 26^th.

Our big low prior to this rally was October 27^th.

Precisely 2 years after the QQQ all-time high it struck a closing high on November 20^th which

Remains the closing high for the move so far.

Following a breakout on November 7^th, the Q’s ran up to November 20^th where they’ve traced out a Line Formation.

Is the Line Formation a high level consolidation or is it distribution prior to a correction.

It must be said that we’ve seen fireworks in many individual stocks comprising the QQQ during this side-ways stint.

As long as the overall market and indices at large are not getting hit, money managers will play and chase.

On November 29^th the Q’s left a Gilligan sell signal as well as a Soup Nazi sell signal.

Below we zoom into the Combo sell signal.

A Gilligan sell is a gap up to a new 60 day high with a close at near session lows.

A Soup Nazi is a new 20 day high that reverses stabbing back down thru the high of at least 4 days ago within the 20 day lookback.

The sell signals produced a pullback to the 20 day moving average.

Notably, the QQQ 3 Day Chart traced out a “stealth” turndown of its 3 Day Chart on November 28,

The day prior to the intraday high for the move…the Combo sell signals of the Gilligan and Soup Nazi on November 29^th.

While Wednesday reversed again from a gap up open, once again the 20 day moving average supported the Q’s.

In sum, the 3 Day Chart turned back up  yesterday ---right into this morning’s widely-watched jobs numbers.

Things are going to get interesting.

Either this turn up in the 3 Day Chart is going to define a high soon in terms of time and price…or the Line Formation is coming to an end with an attack of all-time highs on the table.

Pulling back the lens to check the weeklies shows 3 drives to a low in late October followed by a Weekly Rule of 4 Breakout.

Immediately following the breakout the Q’s turned their 3 Week Chart up .

The next week started the aforesaid Line Formation.

The daily Combo signals perpetuated a turn down in the Weekly Swing Chart.

Bullishly the Q’s rallied off that turndown.

The upside pivot now will be the behavior following a turn back up of the weeklies.

I doubt that is today’s business.

But it could happen next week on trade above whatever high is struck this week.