Cobra's Market View Private Messaging System shows:
Expect QQQQ to have at least a short-term pullback.
|Trend||Momentum||Comments - Sample for using the trend table.|
|Long-term||Down||Idea for trading intermediate-term under primary down trend.|
I discussed the negative divergence between VIX and SPX in Friday’s After Bell Quick Summary. This is the main reason that I don’t trust this rally.
2.0.0 Volatility Index (Daily), VIX ENV10 oversold, still is a pullback setup.
Besides, QQQQ has some additional extremes:
2.3.4 Nasdaq Total Volume/NYSE Total Volume, too high which usually means a top. Since it’s a RATIO, so I don’t think the spike was caused by Russell 3000 re-balance on Friday.
5.0.2 S&P Sector Bullish Percent Index, Tech sector is overbought. This is year level of overbought, so I don’t think it could be neglected.
Nasdaq 100 short-term model from www.sentimentrader.com, way overbought。
So to summarize, I tend to believe a pullback Monday, especially QQQQ.
0.0.2 SPY Short-term Trading Signals, lots saying about a Complex Head and Shoulders Top is in the forming on SPX. The chart below illustrates the idea which shows SPY is probably making a right shoulder now. I have no idea if this is true, just put the chart here for your reference only.