Somewhere in Limbo

Large cap tech leadership marginally reclaimed its previously-broken $271-$280 range late-last week. And QQQ (updated below on its hourly chart) followed-through back up to around the midpoint of that range early on this week. 

As it stands now, that is a major reason why the market, overall, feels as though it is sloshing around into the end of week/month/quarter with no real direction. In addition, we have the S&P 500 index with a fairly obvious 50-day simple moving average test still in progress. 

That said, some pockets of hot money are clearly in names like BYND GRWG SNAP TWTR, etc., and it remains to be seen if those issues stay strong. 

However, using the QQQ ranges on the hourly chart at least offers good context for this market as to the issue of whether we are back to trending higher or working through more sideways or even corrective action. I am still looking at the VIX for clues to see if volatility at least modestly rises as we head into the election, especially since Congress is dragging on another stimulus measure. True, I am sure a major, major crash event has been hedged for already in terms of November VIX positioning, but that is not what I am referring to at all--I merely mean a more standard move up in the VIX as equities reset or possibly rotate. 

Finally, with the weaker Dollar today I have a close watch on gold and her miners for resumption of their primary uptrends. I expect chop in that part of the market, too, but the larger move up since the spring remains mostly intact.