Today’s gap has taken QQQ back to the top of my bounce target zone off the Aug 5th lows (i.e.- the 188.37 resistance level) with the PPO signal line still below the zero line. The PPO signal line (9-ema) helps to identify the near-term trend as bullish when above the zero line and bearish when below on the 60-minute time frame.

Likewise, SPY has gapped up to the 292.25 gap + price resistance while still within the bounce target zone off the Aug 5th lows (top of the bounce zone is 294) with the PPO signal line also still below the zero line for now. As I like to say, resistance is resistance until & unless taken out so while I’m not crazy about the major stock indexes making another run-up towards the top of those bounce target zones, especially as those levels were already tested twice, I have to say that this overbought bounce back into resistance once again offers an objective shorting opportunity with stops somewhat above the top of those bounce targets zones on both SPY & QQQ although I think it would be best to hold off until the indexes break below both of the uptrends lines that were posted on /ES & /NQ earlier today.