Equity Markets Regain Support

QQQ is currently trading just above the 100 level which the downside target/key support that I've been targeting for months now. The big overshoot of that level following the open today seemed to be largely caused by order imbalances with HFT the most likely cause of the mini-crash earlier today.


The SPY has also managed to rally back above this support zone. Remember, it is the close, not intraday price action, that is most important when trading the daily time frame. Bottom line is that shorting here with the markets just above key support while deeply oversold is not objective. Best to wait for either a solid break of these support levels OR a bounce back up to decent resistance, assuming the charts confirm short entry at the time. Of course, with an hour & a half left in the regular trading session and volatility spiking to multi-year highs today, anything can still happen today.

SPY daily 2 Aug 24th

SPY daily 2 Aug 24th

2017-03-08T21:20:20+00:00 Aug 24, 2015 2:34pm|Categories: Equity Market Analysis|Tags: , , , |Comments Off on Equity Markets Regain Support