Just a quick post sine everyone is probably wondering about Friday’s rally after the previous six days of selling that took the Cubes (NASDAQ: QQQQ), the market, and many former leaders down to oversold levels. Indeed, we can see Friday’s bounce and possible setting of the second bottom on a double bottom base. All is good so long as we don’t undercut, and close, below Friday’s low, especially on volume. If that happens it will signal a leg down. If that doesn’t happen, we’d look for a close above the middle of the potential “W” bottom base, i.e. a close on volume above $42. See below for the weekly view.
Here we see the bounce from the February low occurred on unimpressive volume and this week’s selling, which actually began in the prior week, occurring on rising and above average volume. That’s a yellow flag for the scenario identified in the first half of this post. Cheers!