QQQ 15 minute 3 March 25th
The QQQ experienced the typical reaction (i.e.-bounce and/or consolidation) at the S2 level with prices now moving lower. I still expect a brief snap-back rally that is likely to take the Q’s up to the 107.20 area although a continued move down to the S3 target zone before then is certainly a possibility. My plan is to hold onto my bounce (long) trade taken at the S2 level with a stop placed somewhat below the bottom of the S3 zone.
From the bigger picture (daily chart) the Q’s are trading slightly below the wedge but as extended to the downside as they already are today, my expectation is this initial breakdown will likely prove to be a whipsaw signal, with the Q’s snapping back up inside the wedge tomorrow morning with one last pop before prices make a solid & sustained break below the wedge and continue down to my swing trade target of 100.09.
Note: QQQ remains an Active Short Trade. The counter-bounce quick trade is just an attempt at a quick counter-trend bounce trade and not to be categorized as official swing trade idea.