Three weeks ago, I suggested paying attention to the Q's as the leading market,
and watching for resistance and channel breakout. Last Friday QQQ broke through
multiple resistance at the 59.25-59.35 area, but still remains below channel
resistance at 60.
Given the overbought nature of market internals, and the prevailing bullish
sentiment, in a normal market environment I would expect a retracement from
current levels.
Considering the amount of interest focused on the political games being played
in Washington, however, and the uncertain reaction that a debt ceiling deal
or lack thereof may provoke, it would be foolish to rely solely on historical
precedent. Therefore, my suggestion going forward is to stay with the trend
but be very quick on the trigger.
George Krum is the author of the "CIT Dates" blog and several
books available on Amazon.
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