Replies to post #57 on Invesco QQQ Trust Series 1 (QQQ)

[frenchee]

The Nasdaq Composite Bullish Percent Index ($BPCOMPQ)is a market breadth indicator that's calculated by dividing the number of stocks in the Naz that are currently trading with point and figure buy signals, by the total number of stocks in the Naz. I use the $BPCOMPQ to give me a hint of the technical interpretation beteen QQQQ price action and market breadth. In the case today, price was down and the $BPCOMPQ was up indicating a positive divergence between price and the $BPCOMPQ. My technical intrepretation is the broader mid and small stocks are outperforming the Naz large caps and quite possibly the divergence will be resolved with the Naz large caps (QQQQ)playing catch up. This typically happens but not all the time. What's making things cloudy is the position of another market breadth indicator I follow with the symbol $NAMO. It's current reading is confirming the downside slide in price. The weight of the evidence suggests to me to be long as price is on the north side of QQQQ's 21-day SMA. Nevertheless, I've got my stops set at 1% below the 21-day SMA in case I'm out of allignment with the market.