QQQQs starting to chop, TNX exiting out of triangle

Discussion in 'Trading' started by michaelscott, May 17, 2007.

  1. Im almost convinced that we will have a correction very shortly. The ten year yield is exiting out of its triangle and the Qs starting to chop.
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  2. Here is my Qs chart. If there is a fall, then there are several areas of support to include the bottom bollinger, the 50 day and finally the line in the sand I drew.

    I figured if the Qs were not able to break through the top resistance then they would swing down to equal about half the height of the March-April cup to find support before making another attempt for the top.
  3. Just look at breadth in the Naz and NYSE, it's pretty obvious bro. 60%+ decliners to 30%+ advancers...breadth has been really bad for a while now.
  4. Weren't you bullish a few days ago?
  5. S2007S


    yea, its been going on for weeks yet the markets still power ahead.
  6. I was when the $RUT was appearing to get through the resistance and interest rates seemed to stabilize. Unfortunately, things change quickly and you have to adapt to each change. If interest rates break out of the bermuda triangle, then we will have problems.

    The magic number for the ten year yield is 5. As the yield approaches 5, then the market seems to struggle. If the rates can duck back under 4.7 and retreat, then the market will stabilize. Unfortunately, there is no catalyst for the ten year to go lower unless some foreign buyers step in to buy the 10 year note.

    The fundamentals are there, the earnings are there. However, if the interest rates get to 5 and above, then we tank. The only question is how far.

    We are at 4.75 now and counting.

  7. I dunno. The BPNDX (bullish percentage on the NDX) is up around 75% and hanging in there. This mean a high level of component participation in the Naz 100 uptrend.

    If price were pushing up with the BPNDX falling, I'd start to worry.