August 17, 2017

QQQQ remains short-term overbought

I really do not have much to say today. My stance is still the same as yesterday, at least in the tech-heavy QQQQ.

From yesterday: All of the major indices are sitting directly below strong overhead resistance. Combine this with the aforementioned overbought conditions and the probability of a fade increases. Furthermore, the two gaps (4/16 & 4/18) from two weeks ago continue to weigh on the recent low volume rally. If I sound a bit bearish at the moment, well, I am, but only over the short-term. Of course, we could see an intermediate-term decline going forward (or the exact opposite) but for the purpose of my options strategies I will stick to the short-term time frame.

April 29, 2008 – Crowder’s Overbought/Oversold Readings

Major Benchmarks

  • Dow (DIA) – 60.9 (neutral)
  • S&P (SPY) – 64.3 (neutral)
  • Russell 2000 (IWM) – 57.9 (neutral)
  • Nasdaq 100 (QQQQ) – 75.7 (overbought)
  • Emerging Markets (EEM) – 40.4 (neutral)

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