The Black Box

[rcptrader]

mjk,

In an earlier post, I said something about a 'show me' day. The bulls needed to erase the previous downdraft and then some, which would indicate that the parabolic breakout was happening. That did not happen, which means no parabolic breakout (at least for now). Currently at the 50 DEMA support level, there should be a good bounce (at least to the daily BB midline) which could then morph into higher highs. There was some damage done by the bigger than expected downdraft, which needs to get repaired quickly else the herd will lose interest in pulling the markets upwards.
No matter what happens, I will remain bullish at least thru the February expiration. Currently the March QQQQ put/calls don't look as favorable for a bull move as does the February's.