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QQQ Backtesting Wedge Pattern

Today's gap down has taken QQQ for a backtest of the 60-min bullish falling wedge. Will this prove to be a buying opp or is this the start of the bull trap scenario laid out last week?

QQQ 60-min July 2nd

QQQ 60-min July 2nd

Zooming down to the 15-minute time frame, last week's primary scenario is still in play with today's gap down following Friday's reversal off the R1 resistance zone. While R1 & R2 remain key resistance levels, ideally for the bearish case, any bounce this week should be contained by the 172 minor R level.

QQQ 15-min July 2nd

QQQ 15-min July 2nd

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2018-07-02T10:48:05+00:00Jul 2, 2018 10:48am|Categories: Equity Market Analysis|Tags: , |4 Comments

4 Comments

  1. jamesp July 2, 2018 10:54 am at 10:54 am

    I added to my shorts vs high of the day, I think we see a pullback intraday at least

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  2. jamesp July 2, 2018 11:26 am at 11:26 am

    Randy what is your opinion on new quarterly flows hitting the market and their possible impact?

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    • rsotc July 2, 2018 12:08 pm at 12:08 pm

      I don’t have much of an opinion on that. Not sure how big the quarterly flows will be or even if they will be positive (inflows) or negative (outflows). Either way, I’ve seen the stock market move lower during periods of inflows & vice versa so I prefer to focus on price action unless there is a very strong & fairly persistent trend of outflows from US equity funds & ETFs while the stock market continues to rise.

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  3. Sonelay2562 July 2, 2018 12:05 pm at 12:05 pm

    I think this week market is mostly focusing on trade war.

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