It certainly feels like! But, as usual, do not bet your house on it.
While QQQ, and individual big tech stocks had lead the decline so far, there are some mixed signals for the bears as well. Should you be more curious – refer to my last four blogs to see more about APPL and QQQ struggle.
I like to use XME as additional barometer for the market. What I noticed was the recent nice retest of SMA(50) and a bounce back above SMA(200) on the daily chart of XME.
Emerging markets EEM has been also showing an uptrend after breaking out above SMA(200) on 09-13-12 with confirming volume.
Mid caps MDY is trading in a triangle with support at 178 area. While SMA(20) is still trying to cross below SMA(50) and SMA(200) not so far away, this one still has a chance to linger before the election day.
QQQ is not that far away from testing SMA(200). Bears should be careful as this served as a solid support since December 2011.
Eva
In my last comment I mentioned that on Oct 15th “AMZN has put in a bottoming tail hammer on a long term uptrend line”. This was a good location and the right candle for a reversal but the volume was very light.
On Friday, a day after earnings AMZN put in a bullish wide range bar taking out the highs of the previous three bars on twice the average volume.
Even though AAPL closed below it’s open it formed a bottoming tail hammer just above the 200 MA on almost twice the average volume.
I see this as signs of exhaustion of the downtrend.
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