The Cubes (NASDAQ: QQQQ): 6:50 AM NYC time: Just a quick post to note day one of a rally attempt, the second one since the global decline started making headlines. The rally attempt comes well below the 200-day EMA for the Cubes, but above the 200-day for the Diamonds (AMEX: DIA), and right on the 200-day EMA for the Spiders (AMEX: SPY), Mid-Cap Spiders (AMEX: MDY) and iShares Russell 2000 Index (AMEX: IWM). See charts, below.
We were defiantly due for some sort of rally attempt and it looks like the 200-day EMA was the spot, which is fitting since it can serve as a line in the sand, dividing bull market and bear market. Also notable is the record volume for the Cubes and some other ETFs (see charts, below). This record volume is telling because it only produced small gains. We will see. My ideal scenario would be a nice size rally on declining volume and then a reversal candle on increasing volume, which would be the signal to put on new shorts, possibly with leverage. Cheers!
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