/NQ continued to trade on the trend line support since falling to it late yesterday. However, it also formed a potential bear flag continuation pattern. Bottom line: If TL support holds, /NQ is likely to rally today, especially on a solid move above the flag while a solid break below the recent lows would be bearish. Currently, I favor the former but certainly can’t rule out the latter. Also, see my 60-minute QQQ potential scenario that could cause a whipsaw breakdown below the bear flags on the 60-minute stock futures.
NQ 60m Sept 4th
/ES (S&P 500 futures) continued to trade on the 3447 support all night (bullish so far) but also formed what could prove to be a bear flag continuation pattern. Bullish (green) scenario preferred but bearish (red) scenario certainly possible.
ES 60m Sept 4th
QQQ hit & traded on the 286.32ish support/target late yesterday, throughout the after-hours session & into the pre-market session so far today with uptrend line support just below. Should the Q’s take a jog down after the open today, triggering a breakdown of the 60-minute bear flags on the stock futures, I’d put favorable odds that would be a whipsaw sell signal with QQQ hitting trendline support & bouncing from there.
QQQ 60m Sept 4th
Bottom line: While this may seem like a lot of ‘maybe’ scenarios & I do need to acknowledge that anything is possible, including another big leg down today, I favor the bullish scenario of a bounce today with either these current support levels (and the recent lows) holding or a marginal new low early today to around that uptrend line on QQQ followed by a reversal & rally. Any move much below that uptrend line, especially on a solid 60-minute closing basis, has the potential to open the door to another impulsive wave of selling.
Should my preferred (bullish/bounce) scenario play out today, I will follow up with potential bounce targets although as of now, that remains the same as covered in yesterday’s videos (the 291-293ish resistance zone on QQQ & the 11940-12010 R zone on /NQ.