I’m just including the Nasdaq 100 QQQQ chart again today as that still looks like the best choice for trading this bounce to the upside. The Qs and Dow were up about 1% today, while the S&P and Russell were up slightly less at about .76%. That doesn’t matter as much as the fact that the Nasdaq 100 is still holding on to an uptrend, while the other markets have broken down and will take much more repair before an uptrend can be called in those. The Qs traded most of the day above the three day pivot that I referred to in yesterday’s chart. Unless there is some unusual reaction to the job report on Friday morning, the bounce should continue for a bit longer. I would still look for a re-test of the recent lows before the correction can be called completed. The following is a weekly chart:
It’s sometimes helpful to stand back a bit and get a view of the longer term. The CCI is still holding above the +100 line, which is bullish. The double stochastic in the bottom subgraph is now in the oversold zone, but hasn’t turned up. That indicates to me there could be a little more downward corrective bias over the next few weeks before another leg up begins, but so far this is in the context of a larger cycle uptrend.