QQQ has rallied back to the same level where I posted as an objective level to close the longs (we reversed into a the previous lows after closing shorts & going long there to game that expected bounce) & an objective level to get back into swing short positions. Aug 1st & updated 15-minute charts of QQQ below.
QQQ 15m Aug 1st
QQQ 15m Aug 15th
I am highlighting this as a potentially significant resistance level because not only did the Q’s reverse right on ‘cue’ from there, but that reversal was followed by the biggest single-day drop in years including an 11% drop from that level in just 3 trading sessions. As such, those psychological scars should still be very fresh in both investors’ and traders’ (that were on the wrong side of the trade) heads. While that doesn’t guarantee that the rally off last Monday’s lows will end here, it does indicate this is a technically significant level that certainly has the potential to do so.
As per today’s earlier video, my plan is to wait to see how the week closes & while I hadn’t planned on adding any more short exposure on the Q’s today, I decided go ahead & do so with a tight stop on this lot of a 60-minute close below that potential downtrend line off the highs that comes in just above; Not on my previous position, only the lot of /NQ’s I’m adding here. I will re-assess the remaining short position that I starting scaling back into tomorrow afternoon as we start to get some visibility on how the weekly charts of QQQ, SPY, & the market-leading stocks are poised to close.
As per today’s earlier video, QQQ needs to fall at least 2% from current levels by 4 pm Friday to close on (or even better, if below) the primary uptrend line off the early Jan 2023 lows which was taken out two weeks ago with a second weekly close below last week. Otherwise, if QQQ can print a solid weekly close back above the uptrend line then the recent breakdown will prove to have been a whipsaw.