QQQ SELL PATTERN and XLP/QQQ buy pattern – don’t shoot the messenger

10/21/2018

note the ratio .. we have a pretty nice bullish engulfing pattern on the ratio which is precursor to potentially further weakness.  If looking to BUY the Q’s would definitely wait for a nice sell pattern or overhead resistance to be hit before stepping in …certainly appears to have some room to run.

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here’s the QQQ on a daily time frame w/ the target zone denoted. sure looks like another wave of selling should be starting to complete a 5 waves sequence.  Is that A or 1 … if A, then a rally should occur followed by more selling and then a BUY. If 1 then we have, potentially, a lot more downside to come.

I do not know or care which it is ….1 or A.  Just looking for a pattern.

Also, doing a monthly log below to look for key trend line support or breaks.

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In July, we noticed this pattern completing. Yes, we went 3 points thru but the RATIO held and popped big time today.  Watch the median line shown below on the XLP/QQQ and see if price goes thru the line then the sell off could continue.

Thanks!

Bart

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