QQQQ holds on to gains stubbornly

After bouncing surprisingly strongly, the QQQQ has fallen only modestly since its peak last week.  We think this is likely to be short lived and selling pressure should resume soon.

Massive rally

It is unusual to see market action like Tuesday's, when the QQQQ rose almost 4%. The three previous sessions were putting our current long signal under pressure, with a sudden recovery yesterday. The rally appears to be carrying through to today. It is impossible to say whether Tuesday marked the bottom of an extended bull or just a short term wave, but we believe the long side is the place to be currently.

Early call to market bottom

Our call for a bottom was early based on the last three sessions, but information from both the QQQQ and a secondary index we follow closely, the Russell 2000, seems to be pointing to a near term market bottom.