The QQQ has now pushed back to the aforementioned 99 resistance area which is the base of the rounded top pattern which prices broke down from yesterday. This push back to resistance may possibly offer an objective short entry with a stop not too far above, preferably on either a 60 minute or 120 minute (candlestick) closing basis as those are the time frames in which this pattern is best viewed. However, we also have a breakout in the SPY that may pull the Q’s above that 99ish resistance level.

QQQ 60 minute Sept 16th

QQQ 60 minute Sept 16th

 

As the Q’s are now testing the recently broken support from below, the SPY has also just broken above this bull-flag pattern shown on this 60 minute chart. My expectation is that this bull flag breakout on the SPY may prove to be a false breakout (bull trap), although until/unless that happens, a short trade on the Q’s here at resistance is likely to fail if the breakout on the SPY sticks and prices continue to move much higher. Although I’m not adding a QQQ short as an official trade idea, I may take a short position but ONLY if the SPY reverses today or early tomorrow and prices move back within the flag pattern (and of course, the Q’s are at or below the 99 level).

SPY 60 minute Sept 16th

SPY 60 minute Sept 16th