Tradewinds for Monday March 24th

OK, we got the nice bounce back on Thursday that we needed to add some confirmation to the big move on Tuesday. The result is that all of our momentum indicators took a turn up, although for our long term indicator, it was the barest of moves, but still positive.

I have been watching the behavior of the tech stocks for some time, looking for signs that they are ready to resume some market leadership. I think that time is now. Check out of Top 25 Long list and you will see the big techs moving back into play.

Take a look at the chart below for QQQQ (click on the chart for a better view). Our long momentum indicator is based on the True Strength Indicator (TSI). You can see that this indicator bottomed in late January and has been steadily working its way back to zero (-5 to +5 is the neutral zone, over 5 is positive momentum). This chart tells me that a strong base has been put in place and that we are ready to make a move to the long side. Tell your family and friends that you heard it here first - tech stocks are back in play.