QQQ has just hit T4 for a gain of approximately 8%+ from the initial sell signals back in November. While I still favor more downside in the coming days to weeks, the odds for a reaction off this level are higher than they were when QQQ hit the third target zone earlier today, although that doesn’t mean that the Q’s can’t or won’t continue lower with little to no reaction off this support level. As such, less-active swing & trend traders might consider remaining short & riding out any counter-trend bounces at this time, especially considering the fact that we have the next major sell signal on QQQ today with the solid breakdown below the 377.64 & intersecting uptrend line support on the daily time frame. Should we bounce here or following a brief momentum-fueled overshoot of this support level/target, a potential bounce target zone would be anywhere from the bottom to the top of today’s gap. 60-minute chart below.
QQQ 60m 2 Jan 10th
Additional levels & other technical developments worth noting can be viewed in the following video covering QQQ, /NQ, AAPL, MSFT, GOOGL, & AMZN.