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QQQ Approaching Resistance While Overbought

QQQ approaching the 178 resistance level with both the PPO & RSI at levels that have capped all previous advances in the recent past. While this does not assure that the Nasdaq 100 won't continue to advance well beyond the 178 level before a pullback of 2% or more, it certainly increases the odds that a tradable pullback and possibly more, are substantially evelated at this time. 60-minute chart:

QQQ 60-min July 10th

QQQ 60-min July 10th

Zooming out to the more significant daily time frame, I'm watching for a break below this uptrend line/rising wedge pattern in QQQ for a potential swing short entry. Also, note that any marginal new high soon would be an extension on the current divergences that were in place at the June highs.

QQQ daily July 10th

QQQ daily July 10th

I will be returning from vacation tomorrow evening, traveling later today & most of tomorrow, with regular market analysis & trade updates/ideas to resume on Thursday. I will reply to any questions or chart requests at my earliest convenience.

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2018-07-10T11:09:17+00:00Jul 10, 2018 11:09am|Categories: Equity Market Analysis|Tags: , |3 Comments

3 Comments

  1. rsotcbiggar2000 July 10, 2018 11:26 am at 11:26 am

    Think these indicators are going to steer us wrong–QQQ going over resistance given earnings season and buyers are going to think everything is great!

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  2. FrancisQ July 10, 2018 12:01 pm at 12:01 pm

    My feeling is that QQQ would pull back to the previous peak of 175 before another rally, given the recent falling VIX. Although i won’t rule out 173, the bottom of the TL. I favour the former scenario.
    https://www.tradingview.com/x/VbOgnq41/

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  3. Sonelay2562 July 10, 2018 12:12 pm at 12:12 pm

    It is going to be a battle-bull has the earning season and breaking resistance to new high momentum, Bear has big resistance to defend.

    Randy, where would you trigger your short entry should bear win? Thaks

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