SPY (S&P 500 ETF) has broken down (on a gap down) below my primary uptrend line off the Oct 2023 lows (same trendline from the April lows), thereby triggering the next objective add-on as well as a potentially more powerful, longer-term sell signal, barring any big reversal & solid recovery back above these trendlines on both SPY & QQQ (which is certainly possibly but not very likely IMO). 60-minute chart below.
SPY 60m July 24th
Likewise, following the July 10th divergent high & flurry of sell signals via minor trendline breaks that followed, QQQ more recently took out the much more significant uptrend line off the April lows, backtested for a few days while SPY (as expected) played a game of catch-up to the downside in order to fall to its comparable (and aforementioned) uptrend line, with QQQ giving me the next sell signal that I like to see following a backtest of a recently broken uptrend line, which is an impulsive rejection off the trendline, which came via today’s large gap down on QQQ. Again, barring a big reversal today or this week that takes both SPY & QQQ solidly back above their respective primary uptrend lines, this should be the sell signal that opens the door to the longer-term swing & trend targets for SPY, QQQ, & NVDA that I first shared in this post back nearly a month ago today. 60-minute chart below.
QQQ 60m July 24th
Although I suspect the selling will likely begin to accelerate from here without the market providing many more objective shorting opps anytime soon, I will view any counter-trend rallies back into decent resistance as objective add-ons to an existing short position until & unless these uptrend lines are solidly recovered. (…as well as add-ons to a re-entry in the $VIX longs, for those that booked profits recently to game the “last hurrah” bounce in the stock market).