/NQ (Nasdaq 100 futures) defended the key 10920ish support on several tests today, putting in a marginal new low to extend the bullish divergences & put in place one of the most potentially bullish setups since the March lows. If the $NDX can rally from here up to & especially above the top of the recent trading range that would be quite bullish while a failure for the bulls to capitalize on this textbook bullish setup with a solid break below today’s lows to take out the divergences would be very bearish.
NQ 60m 2 Sept 17th
My preferred scenario remains a break of this key support followed by another impulsive wave of selling down towards the T5 zone on QQQ although once again, support is support until & unless broken so we’ll have to see a solid break & 60-minute close below the bottom of the recent trading range & even better if the bullish divergences are taken out (via a move down below the previous reaction lows in the PPO & RSI).
QQQ 60m 3 Sept 17th
I’ve posted extensive analysis on the $NDX & the big FAAMG stocks recently as well other technical indicators & developments in recent weeks that are likely to affect where the market goes from here so I really don’t have much more to add at this time. With the Q’s parking just above the bottom of the trading range at the close today with another successful defense, we’ll have to see what tomorrow (and possibly tonight in the futures) brings. The first decent overhead resistance in QQQ comes in around 275 (the top of today’s gap) and then the top of the recent trading range (~281) with key support basically today’s lows.
Good trading.
-RP