- 20 Day EMA is approaching intersection with 50 Day EMA
- Ongoing development of double top scenario on QQQ between Mar-May of this year
- ATR showing rising volatility , similar to what we've observed in the VIX in the past week and half.
- Volume on QQQ is divergent between UP and DOWN volumes. DVOL is rising, with slight retracement in past week, but clear upward trend still visible from 20 DEMA . Bollinger bands are shown which are 20 EMA to the 20 DEMA . This is to reduce the noisiness of the volume signal and capture a clearer picture of the developing volume trend in the market, especially in the tech sector.
- The PMI results today and the initial jobless claims released earlier in the week left investors confused and uncertain as to direction. This is especially evident in the US0Y which has really struggled for clear direction, with inflation woes on the one side, and the prospects of a booming economy in the near future on the other.
[u]Conclusion:[/u] The present uncertainty and angst, which has been made evident from recent Bloomberg and WSJ headlines, has bearish implications for the market, as is typically the case. Combined with the technical indicators, it is my firm belief that the evidence points to continued bearish action. However, I am cautious about this with the understanding that, what should happen and what does happen, are not always in alignment.