During the recording of the previous video (as highlighted at the end of the video), both QQQ & SPY made impulsive breakdowns below the recent trading ranges. On face value and until/unless both SPY & QQQ can snap back into those ranges (SPY back above 408 & QQQ back above 304), these breakdowns are bearish. However, I’d put decent odds that SPY & QQQ will snap back into those ranges & if so, that would make today’s breakdowns “fake-downs” or bear traps (false/failed sell signals).
QQQ daily 2 June 9th
In the daily chart above as well as the 5-minute chart below, you can see that today’s breakdown took QQQ down to the next & pretty significant support level of both the uptrend line off the recent lows (one of my potential pullback targets from last week) as well as a backfill of the May 27th gap, with the Q’s basically hitting & closing right on those dual intersecting support levels.
QQQ 5m June 9th
Again, as of now, QQQ & SPY have broken down & remain below the recent trading ranges, clearly a bearish technical event. However, should both the $SPX & $NDX make a solid recovery back into the trading ranges, that has the potential to trigger a near-term rally back up to & quite possibly above the top of the trading range. Of course, with the big FOMC meeting & announcement next Wednesday, we could be looking at another week or so of choppy trading so probably best to keep things light for now.