What's going on with the stock market? (Week 7)
Well Merry Christmas. With the largest Christmas Eve drop in history are are now in no man's land. We are wondering around trying to figure out what is going on. I believe we may have one positive catalyst coming up...earning season. I think most analysts believe that next year growth is going to slow, but I believe the opposite. With Amazon putting up record sales numbers for the holiday season, I think we are going to see continued growth in tech next year. So today we focus our attention on the Q's
QQQ (chart from yahoo)
As you can see from the chart, we fell right through the support level and we are sitting well under. Now we are seeing a nice relief rally today that is driving a bounce. The question will be, can the rally take us back through these resistance levels. Old support when broken becomes resistance. My guess is that we rally back close to these old support levels through today and tomorrow, then we turn back down on Friday because everyone knows in this market you sell going into the weekend. Then we will likely fall back to the new bottom and retest. If we see a hold near this new bottom, and earnings season comes in time, I believe we could see a bullish surprise in earnings that would propel us back into a bull market.
Now that's just my opinion, and in a market like this one, you can be up 10% one day and down 10% the next. So as always, Good luck out there and may the odds be ever in your favor.
Also here's a disclaimer that you should read:
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