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Bullish Wedge Breakout: Real-deal or Bull Trap?

The 15-minute bullish falling wedge on QQQ popped, followed by the typical impulsive buying that accompanies the breakout of a well-watched technical pattern. Will this prove to be a bull trap as I suspect? If so, I prefer a reversal on or before the 106.80 level, ideally from somewhere within the expected breakout failure range. If so, that reversal will most likely kick off with a gap down on Monday.

QQQ 15-minute May 6th

QQQ 15-minute May 6th

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May 6, 2016 2:48pm|Categories: Equity Market Analysis|Tags: , |5 Comments

5 Comments

  1. rsotc May 6, 2016 3:44 pm at 3:44 pm

    So far QQQ stopped cold at the first horizontal resistance level at 105.60ish. If there aren’t enough buyers to follow-up on this breakout of this textbook falling wedge pattern for more than the mere 0.5% gain so far (post breakout), this market is likely headed much lower next week.

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  2. GetItRiight May 6, 2016 3:52 pm at 3:52 pm

    I don’t know about other members, but I appreciate your follow up comments on expected market behavior. Keep it coming.

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    • rsotc May 6, 2016 4:21 pm at 4:21 pm

      Will do. Have a great weekend.

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  3. joefriday May 6, 2016 3:54 pm at 3:54 pm

    Excellent…. agree..sure looks like a bull trap…

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  4. Teeps01 May 6, 2016 4:49 pm at 4:49 pm

    Second Getitright, wonderful to get your insight Randy on a real time basis. Priceless learning experience.
    Have a great w/e

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