Here what I think the market is telling us:
1-The decline from early March high is over or close to. I am showing you IWM and QQQ with two different short term scenarios because both are possible but a good rally that will bring IWM to new high is in the card. On the other hand QQQ will not move above its recent high. A sucker rally that will be.
2-Once the upcoming rally is over expect more weakness and yes it can be ugly BUT the fact that for now the Small Stocks are stronger suggests the next decline might not be that devastating.
1-The decline from early March high is over or close to. I am showing you IWM and QQQ with two different short term scenarios because both are possible but a good rally that will bring IWM to new high is in the card. On the other hand QQQ will not move above its recent high. A sucker rally that will be.
2-Once the upcoming rally is over expect more weakness and yes it can be ugly BUT the fact that for now the Small Stocks are stronger suggests the next decline might not be that devastating.