last 2 -3 days were very interesting. Yesterday S&P 500 dropped by 0.3 % but the number of S&P 500 stocks above their 50 days Simple Moving average (SMA). Last 5 trading days it dropped by around 9 points. Nothing serious but makes me cautious.
Russell 2000 closed below its 10 days SMA. It’s finding a touch resistance at 200 days SMA.
Let’s look at Heikin-Ashi chart for S&P 500 Stocks Above 50-Day Average ($S5FI)
not good look – the number of stocks in S&P 500 are losing momentum and are falling below their 50 days SMA. about 21 percentage points from march 1st 2019.
It’s in an amazing trend – not only there has been higher volume price increase in QQQ yesterday but volume increase was 50 percent above average!
lets look at 5 mins chart for NASDAQ composite
just up and down and lots of volatility but the most important point is that the closing price of the day. Which is the most important price – its been going up since Friday of March 8th 2019 except for one day on 3/14/2019, which is last Thursday.
for the 3rd day in a row TQQQ closed above the 200 days SMA!
The only thing little bothersome is Russell 2000 has been falling in the last chart which is the ETF with volume
all the FAANG stocks are up – wonderfully yesterday. Netflix was a bumper. It went up 4.5%, up 16 + dollars !!!
So what is the conclusion? Price is the only true north star and it is up so I am long NQM19 and TQQQ.