SPY & QQQQ

This week, I expected a rebound in the S&P within the pink triangle, since bearish sentiment reading reached extreme levels (49.8 %) Triangles are a result of aggressive buying and selling, in this case, it started with the selling after the flash crash. If the buyers are not able to hold the S&P above 1039, the bears will flush the market out of the triangle for a definitive downturn signalling medium term sell signal for equities. The same applies to the QQQQ, as you can clearly see below. The only assets that look still fine for me are the Swiss Franc, the Yen, Gold and soft-commodities.

Good Luck with trading

Point And Figure Charts Part III

Here is an update on Point and Figure Charts for some Market Indices. What is worrisome for me is the fact that European Indices do not show a buy signals as the NDX and the Dow does. If the U.S. starts to outperform, it would be a clear sign that the bear market could resume in the not so distant future.

Ps: Don't be fooled by P&F Price Objectives, they can be misleading and should
not be used to make an investment decision. The good thing about it is that you
can see at once if the underlying is on a P&F buy or sell signal.