After reversing off the first price targets on the daily & weekly charts yesterday, QQQ went on to backfill yesterday’s gap as highlighted as a likely scenario in yesterday’s earlier videos. After making a near-perfect backfill of the gap into the close yesterday, I outlined a likely short-term pullback target (347.44) in last evening’s closing market wrap video which was hit in the pre-market session today with QQQ likely to mount another near-term rally from here before the next leg down.
QQQ 5-min Jan 25th
Hard to say how far it goes, or even to put very high odds that bounce hasn’t fully run its course off yesterday’s lows, so more of a moving target. After reversing from short back to long this morning in my active trading account, I plan to periodically ratchet up stops with a rough target of QQQ 368 and about 1500 on /NQ. That plan may change on a dime depending on what I see today but at this time, I’m leaning towards a little more upside today & possibly tomorrow although the indexes are likely to mostly chop around until after the FOMC announcement tomorrow afternoon. /NQ 5-minute chart with some near-term overhead resistance levels/potential targets below.
NQ 60m Jan 25th
At this time, my intermediate to longer-term outlook (more downside in the coming weeks to months) has not changed although I will do my best to share what I see if that outlook starts to change. As such, less-active swing traders & trend traders might opt to sit tight on their existing shorts & ride out any near-term bounces that remain below a reasonable stop based on one’s average entry price (cost basis) and preferred price target(s).