Building Market Bottoms Takes Time

Forming bottoms in a bear market environment makes for tough trading. Today’s meltdown may be nothing more than positioning for options expiration next week. I don’t know. The QLD 60-minute chart does not look that bad. In comparison to yesterday’s price action, sure… it feels bad. What if the market had just moved up the past seven days, and we had today’s selloff. It wouldn’t feel bad at all. It’s all relevant. I was stopped out of some QLD, so now I wait to see if QLD makes a pivot low before reaching 70.

The QLD weekly chart doesn’t look as bad as the market feels either. That’s a quick drop in the last five weeks. A higher high would change the trend.  Today’s bull/bear ratio came in at 27.4/47.3. I just can’t short into numbers like that.