QQQ is showing a small hinge getting formed. The price is neither dropping nor rising and the resolution of this (potential) hinge might give a clue as to the direction. Price is hovering closer to the top and price hasn't gone down to test the last swing low around 78. This shows that supply hasn't be able to overwhelm demand to take price lower. Notice the higher volume indicating higher intensity of trading and yet price didn't continue going down. It's like the supply gave up after a bit of a fight and not price is drifting sideways. I would consider it a bit of a sign of strength and with the hinge in the making wait to see which way price moves.
Even if one doesn't pay attention to the possible hinge, the other thing to note is the price drop hasn't been more than 50%. It's actually quite a bit of a steady consolidation instead of anything resembling a drop or even a normal rest after some rise. Price is staying closer to the swing high area and is avoiding the swing low which might be another sign of underlying strength.
Having the so called hinge makes it a bit easier for us to play and deal with price but even without it a person can easily see this behaviour and notice these little tidbits of information.
Comparing that to my previous call to get cautious, this is showing that the call for caution didn't pan out. Price didn't continue down as it would have, had the hypothesis regarding the weakness were correct. In the absence of that weakness we again look at sideways and up movement. Hinge (red triangle) is our focus for now to see which way the price moves as a result of the interplay between supply and demand.
If anyone of you are beginning to feel nauseated from this constant changes of weakness, to neutral, to strength, let me assure you the feeling lasts only as long as it takes price to resume a trend. This feeling is still better than the feeling of losing money in the investments without knowing what's really going on. Those with less inclination to be bothered with all this can always wait for the price go above the swing high or to go below the swing high. No worrying about the messy middle stuff that at times I write about. Simplicity is the key here. For Q's the price going above 80 or below 78 would be the example of that relaxed trading.
QQQ Daily:
Gringo
Even if one doesn't pay attention to the possible hinge, the other thing to note is the price drop hasn't been more than 50%. It's actually quite a bit of a steady consolidation instead of anything resembling a drop or even a normal rest after some rise. Price is staying closer to the swing high area and is avoiding the swing low which might be another sign of underlying strength.
Having the so called hinge makes it a bit easier for us to play and deal with price but even without it a person can easily see this behaviour and notice these little tidbits of information.
Comparing that to my previous call to get cautious, this is showing that the call for caution didn't pan out. Price didn't continue down as it would have, had the hypothesis regarding the weakness were correct. In the absence of that weakness we again look at sideways and up movement. Hinge (red triangle) is our focus for now to see which way the price moves as a result of the interplay between supply and demand.
If anyone of you are beginning to feel nauseated from this constant changes of weakness, to neutral, to strength, let me assure you the feeling lasts only as long as it takes price to resume a trend. This feeling is still better than the feeling of losing money in the investments without knowing what's really going on. Those with less inclination to be bothered with all this can always wait for the price go above the swing high or to go below the swing high. No worrying about the messy middle stuff that at times I write about. Simplicity is the key here. For Q's the price going above 80 or below 78 would be the example of that relaxed trading.
QQQ Daily:
Gringo
