The QQQ is now positively stacked and sloped on the 10, 20 and 50-day moving averages. Plus it's over the 200-day MA and the high of the last 2 months of consolidation. In short, its trend has turned up and it's broken out!
The other three markets are still in the process of trying to reverse their down trends as measured by the 10, 20, and 50 day MA's and they have not broken out of their ranges, and remain well below their 200-day moving averages.
What NOT to do right now - pick a top. Many indicators are reading "overbought", but price action must rollover for the market to go down. Watch the price action closely, and know that you don't need to pick a top. Our rules for getting aggressive on the short side enable us to adjust very quickly, so there is no reason to fight the short term up trend. We will get a pivot pattern and or a daily bar pattern that will warn of a top, or at worst our rules relating to S1 will keep us from getting hurt by any surprise on the downside.
Until we get signals to get aggressively short there is plenty to do in determining whether to chase breakouts or buy dips. Because markets are in overbought territory I would hesitate to chase breakouts in the market watch 4 unless they are all in sync. Be very careful of divergences at the highs. Instead look for bullish OR reversals as long as they are over S1.
Focus Longs
XRT
GLD
TJX
CERN
REGN
HUM
FSLR
OR reversals
TIF
NEM
ORLY
SHKP
SPG
VMW
CF
CELG
SGEN
DTE
ABT
MOS
Focus Shorts
PEP
URBN
OPEN
IDCC