Following Wednesday’s early session pop impulsive late day sell-off, QQQ consolidated in a tight sideways range to close the basically flat on the day. Also note how QQQ failed on numerous attempts throughout yesterday’s session at the 132.40ish resistance level, which defined the key level of the recent failed breakout to new highs. Also worth noting is that despite a slightly green close on QQQ (+0.05%), three of the four generals; AAPL, AMZN & FB, all closed negative yesterday with MSFT the only one of the 4 top-heavy mega-cap components that recently made new highs along with the Nasdaq 100 that close green yesterday. Can’t read too much into one day’s trading action but I’ll be on watch for continued under-performing of this shrinking handful of top-weighted components that have been doing nearly all the heavy lifting in recent months.

QQQ 30-minute April 7th

QQQ 30-minute April 7th

SPY backtested the 30-minute bearish rising wedge in yesterday’s “go nowhere” mostly sideways trading session. With a backtest of the wedge now out of the way, prices are likely to continue lower with a red close today. Overhead resistance levels that would dampen the near-term bearish outlook if taken out (on a 60-minute closing basis) are 236 then 237.40.

SPY 30-minute April 7th

SPY 30-minute April 7th