NQ1!, Drifting to All New High Despite Screaming Divergence
Another positive day for NQ. In the morning the bears had a chance to push harder but only managed to fill the gap. A shallow pullback was immediately bought for a retest of the Globex high. There is no doubt that the buyers are targeting to reach the previous all time high. The AAPL strength was pushing NQ to higher prices and helped the Dow not to loose ground.
One can notice a negative divergence on a most popular indicator. This is not a sell signal though. It is only a warning that the trend is about to change. As I mentioned before until the love to FANG stocks turns to opposite the NQ is going to grind up despite all the divergences and overbought conditions.
Buy pullback remains the current theme. This is applicable for active day trading. A long term investor should be cautious.
Bears be patient...Nothing last forever and the market is cyclical.
04/08/2019
One can notice a negative divergence on a most popular indicator. This is not a sell signal though. It is only a warning that the trend is about to change. As I mentioned before until the love to FANG stocks turns to opposite the NQ is going to grind up despite all the divergences and overbought conditions.
Buy pullback remains the current theme. This is applicable for active day trading. A long term investor should be cautious.
Bears be patient...Nothing last forever and the market is cyclical.
04/08/2019