Per the 60min trading strategy, the Q’s, and just about everything else, are set up for a bounce tomorrow. I’d be extra krispy careful should you decide to play the bounce, if it does in fact materialize, because it could easily blow up in your face. Still, with the RSI on the 60min chart below 30 at the close and the Sto down around 14, the Q’s are short term oversold.
Q daily chart showing how Q’s came right down to the rising trend line off the June lows, pierced it, and then stopped and closed right on it. I don’t really know if that means anything, but it is interesting. The support line around 67.23/.24 is now short term resistance but a bounce should take the Q’s above that. If we do in fact bounce on Thursday and if the Q’s are not able to climb above this resistance line, then Q’s are in worse trouble than I think they are.
Also note that the ADX line is about to push up through the falling +DI line. For those who trade Wilder’s ADX, when the ADX line pushes up through the falling +DI line then this is the last chance to get out.
Breadth indicators are showing oversold, which is more evidence for a bounce tomorrow, but they are not showing extreme oversold, which is why I think the bounce will be counter trend. And I could be totally wrong and the market just keeps heading south tomorrow with a vengeance, but that’s not generally how it goes. Just as markets don’t go straight up, they don’t go straight down, either. After the bounce, then I think we’ll resume the down trend because pull backs don’t end without a climax selling event and we haven’t seen that yet.