Further along the lines of my prior two posts this morning (about VIX and the QQQQ's), notice first that the Dow Jones Industrial Average poked briefly this morning above the price level that is its Fibonacci .786 retrace to the January high. That Fibonacci retrace level is at 8527.75. If the Dow Industrials put in a reversal pattern from this level, it can be bearish at least for some time period. It would be too soon to know whether that would mean re-testing the March lows.
When you look lower at my next chart, an hourly chart of the QQQQ's, you can see two things. One is that, even though the QQQQ's poked above the 35.18 level I mentioned yesterday and early this morning, they were not able to go above yesterday's high.
Second, that the QQQQ's have poked under yesterday's low. This also is a potentially bearish signal.
Although once again, it would be too soon to say whether this might mean just a pullback, or something more bearish.
If we see a continued movement down, then we'll of course be reviewing those possibilities.
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