Tuesday Update: On The Cusp?

BABA is in (or close to) Sell_Pending mode and will reverse Short upon a close today below $167.  BABA would then be joining AAPL as a recent intermediate sells in high cap technology/social media sectors. In the Blue Line Prime portfolio we have recently received short-term sells in AAPL, TSLA, BABA and FB. What is going on?  

Below the trade tables is a review of QQQ, a technology oriented (36% of holdings) high cap index. QQQ is the premier option trading vehicle for trading Nasdaq. This pattern recognition analysis addresses the very long term (15 years), intermediate term and short-term trends. You can stop reading here and just watch BABA into the Close, or, read on for a more in depth look at a possible confluence of tops in many different time frames. 





The QQQ is a high capital stock tracking ETF with information technology dominating its holdings. This sector has been lighting a fire under the general market over the past 12-18 months. It is an important leading indicator, especially at major turns. Based upon my chart analysis below, that turn may have already, or is in the process, of occurring. 

First, the big picture looking back via a monthly chart to the technology meltdown low of 2002. I've embedded an Elliott Wave count on all of these charts because there is a confluence of Wave 5's in all of the time frames. 

Next a more recent Weekly chart that covering the past 18 months:

A more tradable Daily price bar chart of the past year. Pay special attention to Monday's price bar reflecting the steep intra-day decline:

So far, no harm, no foul...except look at this 240 minute chart, a very tradable time frame for QQQ options. According to this time frame, a decline is in force. We just don't know where it will lead.