Things are not looking good for the cubes, the QQQ, the Nasdaq. Not only have you been hearing for the entire week from multi analysts that the sky is about to drop, but here it is, right on the doorstep.
Lets take a look at the chart below, which is a daily snapshot of todays cubes.
A coiled spring formation is like the eye of the hurricane. Things twist up and come to a near freeze and then the potential energy blows and the stock moves quickly either to the upside or the downside. Sometimes the question is which way, whereupon some traders will enter a straddle. If you ask my 20 years of studying the technicals, I would say that a downside coil spring blow is about to happen. The RSI indicator (the one on top) has been slowly decreasing its peaks and has been on a downward slant, as well as the MACD, with its wave flattening out. The price action of the chart itself (the candles) have been winding down to a middle peak. I think this thing will go off in the middle of next week to the downside.
What does this mean to you? When the market blows off for a bit, be it for a few days or a few weeks, it generally takes blue chips and other stocks down with it also, much like the waves will carry out a beachball in thier general direction. Things are gonna be choppy on Monday, so stay Frosty. Next update this weekend.
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