QQQ is trading at the top of the S1 support zone with potential divergences forming. Should prices make a solid break and/or close below the bottom of the T1 zone, a swift move down towards the S2 level would be likely.
QQQ daily Feb 11th
The SPY is trading just above the S1 zone with potential divergences forming on the MACD & RSI. I am leaning towards the bullish of the two scenarios outlined above (a meaningful bounce off the S1 zones) but still keeping things light for now. At the very least, I believe that the R/R to adding new short exposure at this time (at least until/unless the S1 zone is taken out) is quite unfavorable. As mentioned earlier, should the equity markets find support here soon & rally, gold & GDX are likely to fall sharply as the recent flight-to-safety bid is quickly unwound. The flip-side holds true, should equity markets break support & start a waterfall selloff towards the S2 levels. I will add links to the live versions of the charts to the Live Charts page asap.
SPY daily Feb 11th