QQQ is making another run at the 192-195 bounce target following a big reversal in the stock futures last night while gapping up over 6%… a good example of the risks of going or staying short index ETFs during extreme oversold conditions. A reversal is likely anywhere from here up to the 195ish resistance level.
QQQ daily March 13th
With the RSI divergence still intact, /NQ made a sharp reversal in the overnight session & is approaching the 7815 resistance level with downtrend line resistance just above that if this 6.5% pop doesn’t get faded before then.
NQ 60m March 13th
I still favor more downside in the coming days, weeks & quite likely, months, with a very good chance of at least T2 on the QQQ Active Short Trade being hit. However, as I stated yesterday, this is where I like to take a step back, keep things light for a bit & let the dust settle after such an extreme move that took the market to extreme oversold conditions yesterday, setting the stage for the explosive short-covering rally/reversal in the futures last night & making the R/R for being short unfavorable, at least in the very near-term until the extreme oversold conditions, bearish sentiment, & short/put positioning is at least partially alleviated (which this opening gap up very well may have accomplished in one fell swoop).