Yesterday the Q’s made 3 perfect tags of the bottom of the s2 zone with a final kiss of the former S1 (now resistance) level before price broke below the bottom of the S2 zone, which now becomes resistance. My expectation is for a reversal on a backtest of that level with the possibility of a push up towards the top of the former S2 zone (114.25ish) before a continued move lower towards the T3 level.
QQQ 2-minute Dec 8th
Also worth noting is the fact that QQQ tagged the 61.8% Fibonacci retracement level from the move off the Dec 3rd (Thursday’s) lows to the Dec 4th (Friday) high. As such, the possibility does exist that the pullback may have ended.
Bottom line: US equities markets have been trading range bound for over a month now & until we clearly take out the top or bottom of this trading range, swing trading is likely to prove frustration as the markets choppy around. As such, day trading or shorter-term swing trades lasting just a few days has been my preferred strategy, hence my focus on the 2-minute charts recently. I’m also keeping things very light for now. Feel free to post any questions regarding the markets or any trade ideas in the Trading Room or in the comments section under each post (if related to that post).