QQQ took out the 158.65 level followed by impulsive selling which helps to validate the breakdown & chances that the 156.80 support will soon be hit with the potential IHS scenario still in play. Also note that the bottom of the potential* Inverse Head & Shoulders bottoming pattern, which is marked by two heads from the roughly double-bottom lows also nicely fits the criteria of another potential bottoming pattern, a “W” or “Big W” bottom.
QQQ 15-min 2 April 6th
*I refer to the IHS pattern as potential as it hasn’t even formed the right should yet. Should QQQ reverse from or around the 156.80ish level, as I suspect, going on to rally back up to the neckline, ideally on above average volume (an important criterion for an IHS pattern often overlooked by traders, then & only then will we have an Inverse Head & Shoulders Pattern formation. At that point, as with any other chart pattern, one would then wait for a buy signal to come which in this case, would be a breakout above the neckline (see previous posts for the potential IHS details).
With just under two hours left in this week’s trading session, we would almost certainly have to wait until next week before the pattern is completed with a thrust back up to the neckline although I strong rally into the close today could start the ball rolling. Should prices continue much below the 156 level, the symmetry of this potential pattern would be broken & the chances for more downsdide into next week would increase.