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YADH In AAPL & NQ

As of today, we have YADH (yet another divergent high) on the 60-minute charts of both the world's largest stock & top component of both the Nasdaq 100 as well as the S&P 500, along with another divergent high on the 60-minute chart of /NQ (Nasdaq 100 E-mini futures). Either this divergent high plays out for a correction, like all other previous divergent highs since the beginning of the year, or we continue to rally next week which would show a change of character (bullish) in the market. Until & unless proven otherwise, the odds favor the status quo (a correction to follow in AAPL & the $NDX in the coming days to weeks).

To be continued next week....

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2018-05-11T15:25:33+00:00 May 11, 2018 3:25pm|Categories: Equity Market Analysis|Tags: , , , |6 Comments

6 Comments

  1. rsotc May 11, 2018 3:27 pm at 3:27 pm

    Note: Ignore the “(pending confirmation”) caption under the early April divergent low. Those divergences were confirmed shortly after that caption was added.

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  2. GetItRiight May 11, 2018 3:30 pm at 3:30 pm

    Randy, actually the NQ and QQQ divergences are larger on the hourly, taken from the Apr 18 highs. No?

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    • rsotc May 12, 2018 10:32 am at 10:32 am

      Correct. The divergences on the $NDX off the April 18th highs are larger than the current divergences so if the market starts to correct next week, that could indicate a larger pullback than what the smaller divergences that were pointed out above indicate.
      However, SPY doesn’t have negative divergence from the April 18th high nor do any of the market leading FAAMG stocks except MSFT. As such, my convictions that those divergences or even the more recent divergences that I pointed out above will play out aren’t as high as they were at the previous divergent highs & lows since the start of the years, as we had more key stocks and/or both SPY & QQQ confirming those tops & bottoms on the micro-trends so far this year.

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  3. rightsideofthefart May 11, 2018 11:35 pm at 11:35 pm

    Looking at the daily on the QQQ the PPO is pointing straight up at the end of friday. Do you think it is more likely that we close the 170.86 gap on QQQ at this point?

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    • rsotc May 12, 2018 10:25 am at 10:25 am

      I have to say that my convictions on whether or not QQQ will close the gap & possibly continue higher or not aren’t very strong. At the end of the previous micro-rallies & corrections so far in 2018, I was fairly confident that reversals were coming within a day or so before they occurred. This time around, although I favor a starting next week, there are some cross-currents in the charts which indicate that QQQ & SPY might make one more thrust higher next week, maybe as much as another 3% or so, before correcting.

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      • rightsideofthefart May 13, 2018 12:33 am at 12:33 am

        As crazy as another 3% move sounds, I’m not surprised. I draw a lot of my trades from comparing deviations between the FTSE100 (UKX) and SPX. It was one of the reasons I exited my short at 2600 rather than going for the feb 8 low’s undercut. If you take a look, FTSE100 has retraced close to all time highs and I am leaning SPX may follow (at least maybe the NQ). I am hoping there is at least a 168.3 pull back on the Qs early next week though. I’ll most likely be going into next week with strangles, the expected move for the week is only 30! which does not sound right to me. I definitely enjoy your videos though keep it up!

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