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QQQ 60-minute Update

The primary scenario posted yesterday has been eliminated bringing my alternative scenario into play, a reversal around the 141 resistance level into play (2nd chart). I've also added another potential resistance level at 140.27, a level defined by numerous reactions in recent months, which was not shown on the previous 60-min chart posted yesterday (1st chart below). So far today QQQ has struggled with that level so watching for the possibility of a reversal here soon.

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Jul 12, 2017 12:13pm|Categories: Equity Market Analysis|Tags: , |2 Comments

2 Comments

  1. stock51 July 12, 2017 12:17 pm at 12:17 pm

    MACD’s are all pointing up?
    Headlines are driving this market
    Jake

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  2. rsotc July 12, 2017 1:11 pm at 1:11 pm

    Yes, MACD & PPO on QQQ pointing up which indicates a bullish trend on the 60-minute frame. However, I have a mixed bag of trend indicators on QQQ: On the more significant daily time frame, both the MACD & PPO (very closely related indicators) are both turning up, poised to make a bullish crossover but have yet to do so on a closing basis. If so, that would be a bullish event but I’m also noting that the MACD & PPO’s 9-ema are both trading below the zero line which indicates that the intermediate-term trend is bearish.

    While using the MACD or PPO 9-ema as a trend indicator does produce the occasional whipsaw signal, I find it to be a fairly reliable indicator on the major stock indices. This is only the 4th time in over 2 years that the PPO 9-ema was trading below zero with the other 3 times all occurring during the 3 largest pullbacks over that time period.

    I also use the 39 & 13-ema pair as well as the 26 & 13-ema pair on the daily chart to help define the short-term trend for the stock indices & those are still bearish (fast ema below the slower ema) as of now although poised to cross, should QQQ push much beyond my 141.00 resistance level.

    Bottom line is that the very near-term term (since Thursday) is bullish with the trend since the June 9th top still bearish although steadily losing vigor as each previous reaction high is taken out. The long-term trend, of course, remains solidly bullish for now.

    SPY had a pretty clear downtrend off the June 9th highs but the upper-most downtrend line that I have on my 60-minute chart is being challenged now. Bottom line is that the bearish case will rapidly disintegrate on any additional advance in the broad markets from here.

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