Last week’s market was like drinking coffee on a roller coaster—it was unnerving, yet you had to pretend to be calm.
Since breaking below the upward trend line on the 10th, the market has been moving sideways, with blue-chip stocks holding up the momentum, while small and mid-cap stocks have been like deflated balls. While the losses may not be severe on paper, the mood is definitely unstable.
QQQ closed at 603.9 on Friday, while the Nasdaq was at 602.01. While it appears to be holding its upward trend, the momentum is clearly weakening. If it falls below the September 25th low of 588.5, be very cautious; the trend may be weakening.
The current market situation is very realistic: the main players won’t let you profit, nor will they let you leave.
Those who need to reduce their positions will reduce their positions, while those who need to play it safe will play it safe. The market isn’t crashing, but it’s not sweet either—a typical “wasting your time” phase.