A day like today, with QQQ taking out the recent highs on an impulsive rally, has to give anyone pause on a bearish near-term outlook, myself included. However, as I like to say, one day does not make a trend. I still have QQQ & many of the market leading stocks like AAPL, AMZN, INTC, the GOOG’s, etc.. all either with negative divergences on the 60-min or very close on any new recent high (namely AAPL). As such, the case for a correction to start next week is still very much intact on the 60-minute charts but it will have to start soon or else those divergences could be burned through.
We also need to see today’s gains wiped out next week & more importantly, nearly all of the top components of QQQ that I highlighted in the recent video were right on or near support when I recorded the video yesterday. Those support levels must be taken out to give us a sell signal, otherwise, we simply have divergences without a sell trigger.