As discussed in recent videos, there is still some work to be done to ‘confirm’ Monday’s bearish engulfing candlestick on QQQ (Nasdaq 100 ETF) as well as the comparable bearish engulfing candles on the tech sector (XLK) and several of the market-leading FAAMG stocks (MSFT, AMZN, & FB). Essentially, we don’t have any red (closing) follow-up candles to confirm Monday’s bearish engulfing stick as a likely reversal point yet. As such, a solid break below Tuesday’s lows & this intersecting uptrend line would likely open the door to another wave of selling & provide an objective short entry.
QQQ daily July 16th
Zooming down to the 60-minute time frame, the 6.3% drop following Monday’s divergent high & overbought conditions was inline with previous corrections from similar conditions in recent months. One clue as to whether QQQ has more downside still to come will be a solid cross down below the -0.45 level on the PPO by the signal line (9-ema).
QQQ 60m July 16th
What appears to be the most bearish of the market-leading FAAMG stocks at this time, AMZN (Amazon.com Inc.) has printed two confirming red daily candles following Monday’s bearish engulfing stick & is currently poised to start the day red again (pre-market candle shown here). Should the rest of the pack rollover (trigger sell signals) soon as well, my initial price targets for AMZN are the uptrend line & then the 2471ish support.
AMZN daily July 16th
/NQ (Nasdaq 100 futures) is testing the 10508 support with a solid break below that level likely spark another wave of selling.
NQ 60m July 16th