The pop in the stock futures pop immediately following today’s Jobless Claims has taken QQQ above the 61.8% Fib as well as the 203.70ish level with the PPO signal line backtesting the zero line from below. Unless this pre-market pop is faded before the close today, the case for another leg down before new highs starts to rapidly erode. Always a good idea to wait until the starters (institutions) step onto the playing field at 9:30 am before reading too much into any moves outside of the regular trading session as sharp rips & dips with fades of the previous trend are common after the opening bell.
QQQ 60m Dec 6th
The near-term to intermediate-term trend is bullish when the PPO signal line (9-ema) is trading above the zero line, bearish when below with that level often acting as support & resistance when tested from above or below. With the signal line currently backtesting the zero line from below in both QQQ & SPY, should this pre-market pop get built upon with a solid green close today that would certainly chip away at the case for another leg down soon while a fade of this pre-market rally & a red close today would help to increase the odds of another leg down next week.
SPY 60m Dec 6th