The Nasdaq 100 ETF (QQQ) has painted two downward initiation thrusts over the past month. Both of them came from sentiment highs on 7 day momentum. This is an unusual situation. Generally 7 day momentum declines as traders take profit on positions moving into a top. Then as the top is being made in price daily momentum records a strong negative print which corresponds with the initiation of a steeper decline. The current situation indicates traders were taken by surprise. They had an expectation of the market moving higher when Micron (MU) reported a miss. The downward initiation thrusts near sentiment highs indicate how quickly traders are to abandon positions. In short, chasing which leads to instability. You can see the interactive chart of QQQ sentiment from Twitter here.