Comments on: Small & Mid Caps Break Down, Large Caps On Deck

By: rsotc

rsotc — Thu, 10 Aug 2017 17:09:30 +0000

In reply to raghev.

Ideally, I like to wait for prices to fall to support with positive divergences on the 60-minute charts & even better, with some type of bullish reversal pattern forming. Ditto for going short but in reverse (60-minute negative divergence, bearish rising wedge, candlestick and/or price volume confirmation, etc…).

QQQ, SPY, IWM, etc.. have all just put in some very clear & sizable divergent tops on the 60-minute charts but also (much) more importantly, the daily charts as well & It appears to me that they are only just be starting to manifest in the form of the expected trend reversal/correction.

I am acutely aware that since US presidential elections in Nov that bearish technical breakdowns, patterns, divergences, etc.. didn’t play out to the full extent that the charts had indicated but that doesn’t mean TA has stopped working & never will again. As of now I expect more downside to at least those level that I posted on the front page earlier today. If something in the charts changes, I’ll do my best to recognize it & share my thoughts.

By: raghev

raghev — Thu, 10 Aug 2017 14:12:01 +0000

The million dollar question then become is when should we BTFD? Last experience was that we were all waiting for the dip to 132 and we missed the hell out of the push up to 145 from 136. 9 dollars in total.

Should we be buying the dip at 140 or wait till 136 or wait till 132. That’s the million dollar question.

By: rsotc

rsotc — Thu, 10 Aug 2017 13:55:22 +0000

QQQ once again testing the bottom of the trading range that has been recently highlighted on the 60-min time frame (143 area). Based on how many test of that level we've had so far coupled with the divergent high that proceeded it, my guess would be that this will be the final test before the Q's break that support & go on to make a fairly sharp thrust lower.