This rally may be just a late year holiday run. However, looking at the weekly QQQQ chart it looks like this rally could have legs. The real test will be whether it can take out December highs.
It seems likely at this point that it will. Volume may be an issue. It already decreased on Friday. This coming week volume is sure to be low as it always is during the last week of December. This will make it difficult to draw any conclusions about this market.
The last two years the market has rallied into early January and then turned back hard as selling kicked in. This year may be setting up the same scenario, so it is important to be skeptical of any move and to use trailing stops on open positions.
No comments:
Post a Comment