With US stock index futures holding up last night & into today so far, odds favor more upside & quite likely a breakout above the 60-min downtrend line & rally to the 2721 and/or 2750 level in /ES & as high as 7174 in /NQ as dip-buyers once again become emboldened & shorts cover as the market is currently poised to open higher.

Of course, QQQ & SPY (as well as those futures contracts above) still have to contend with the “Golden Trendlines” first, referring to the downtrend lines that I’ve been highlighting on the 15-60 minute charts in recent weeks. As I type, QQQ is trading at 169.68 & SPY at 269.18 in the pre-market session which puts them both just below those key downtrend lines as well as significant price & gap resistance.

While QQQ is currently trading below the Golden Trendline as well as the top of Friday’s big gap (resistance) & may certainly reverse around those intersecting resistance levels although I am leaning towards a breakout & brief pop up to the 172.63ish level, followed by a reversal.

QQQ 15-min Oct 29th

QQQ 15-min Oct 29th

Likewise, a break above the downtrend line + 270 resistance level would likely take SPY up to the 274.50ish resistance level before a meaningful reversal.

SPY 15-min Oct 29th

SPY 15-min Oct 29th

These are just some potential very short-term scenarios. As of now, we do not have any buy signals or evidence of a reversal of the bearish trend that has been in place since early October. I will be posting a video later today highting some recent bearish developments from a fundamental perspective that could lead to more downside in the US equity markets in the coming days & weeks.