ProShares UltraPro QQQ ETF (TQQQ)

[TREND1]

Stocks were hit hard from Friday to Tuesday with the S&P 500 SPDR, Nasdaq 100 ETF and others recording outsized declines. Today we start with these outsized declines and show what they entail going forward. Stocks were already extended and these sharp declines signal the start of a corrective period.

At this point, I will treat any weakness in SPY and QQQ as a correction within a bigger uptrend.

At least as long as the price charts are long-term bullish and the breadth models remain bullish.

It is still early days for the correction and it may take time to digest the gains from March to September. Thus, a little patience may be required to wait for medium-term bullish patterns or setups to emerge.

BY ART HILL

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