SPY is once again coming up on the top of the August-early Sept trading range at the key 294.00ish resistance level. Should SPY pop above the top of the trading range soon, it will have put in another divergent high with the potential for the stop-raid scenario laid out in recent videos.
SPY 60-min Sept 4th
Likewise, QQQ is now testing the downtrend line off the late July all-time highs while about 0.75% below the key 189.40ish resistance level which is the top of its Aug-Sept trading range. Should QQQ pop above the downtrend line & make another run at the key 189.40 resistance level soon, it will also likely have put in another divergent high. If so, that would increase the chances of such a breakout failing with another thrust down within the trading range likely.
QQQ 60-min Sept 4th
Whether or not those marginal new/divergent high scenarios play out or not, the large-cap indexes are current at or just below major resistance and as such, once again offer an objective shorting opportunity with the appropriate stop(s) in place somewhat above with stops relatively to one’s price target(s). An alternative shorting opp might come on either a breakout above the top of the trading range, which would be a more aggressive strategy in anticipation that the breakout will fail, or hold tight & wait to see if the false breakout scenario materializes with an impulsive move back down into the range following a relatively brief (1-3 days) & minor (1-2%) pop above.
IWM 60-min Sept 4th
I’ve added a secondary downtrend line in yellow to the 60-minute chart of IWM above. Should any potential breakout in the large-cap indexes prove to be the real-deal (i.e.- more than just a failed breakout), then IWM could continue to power up to the third price target (T3) that I laid out after the most recent divergent low last week with the 153.70ish level the next potential target, should the large-caps make a run at their late-July all-time highs.