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US Equity Markets At Key Support

QQQ is now testing the key 116.00 support level/bottom of multi-month trading range (minus the Sept 12th whipsaw signal). With the recent breakdowns on the daily charts receiving additional confirmation today, it appears a break of this key 60-minute support is likely to occur soon.

QQQ 60-minute Oct 13th

QQQ 60-minute Oct 13th

The backtest of this 60-minute triangle pattern on the SPY yesterday, which coincided with backtest of support on all the other major US stock indices, was a very objective shorting opp with the broad market immediately reversing after kissing the bottom of the pattern from below. SPY now approaching my minimum target which is also a key support level to watch (yesterday's & today's updated SPY 60-minute charts):

SPY 60-minute Oct 12th

SPY 60-minute Oct 12th

SPY 60-minute Oct 13th

SPY 60-minute Oct 13th

Oct 13, 2016 10:12am|Categories: Equity Market Analysis|Tags: , , , |3 Comments

3 Comments

  1. Profile gravatar of Teeps01
    Teeps01 October 13, 2016 10:53 am at 10:53 am

    Hi Randy
    When 116 goes is that a suitable place to add to shorts? Missed the backrest yesterday.

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    • Profile gravatar of rsotc
      rsotc October 13, 2016 11:33 am at 11:33 am

      When/if 116 goes with conviction (a very impulsive drop below or a solid 30 or 60-minute close below) then yes, I believe that would be an objective shorting opp. There are also some key support levels to watch on the top components of QQQ which will greatly increase the odds of a much deeper correction if/when those levels are taken out. I covered those levels along with some other things to watch for in a video that I just wrapped up. Video is uploading now & should be published in about 20 minutes or so.

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      • Profile gravatar of rsotc
        rsotc October 13, 2016 11:39 am at 11:39 am

        In that video, I also point out the potential for island cluster tops in several of the leading stocks within the Nasdaq 100 & S&P 500 as well as the bullish falling wedge on the NQ & ES (index futures) in place right now. An ideal scenario would be for those index futures 60-minute bullish falling wedge patterns to start to play out today, which would also coincide with a bounce off the QQQ 116 support, thereby luring in some more longs & shaking out some weak-handed shorts, only to see a big gap down on Monday, putting island cluster tops in place on those leading stocks. Just one of several scenarios but either way, I’m just added a little more short exposure right here on this bounce to QQQ 116.65 & will continue to add more short exposure up to but not above yesterday’s close (i.e.- the top of today’s gap), while also shorting any convincing break below QQQ 116.

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