With the leading index (QQQ/Nasdaq 100) along with several key market leading stocks closing on support while near-term oversold on Friday, the resulting bounce has now taken QQQ back up to test the first (163ish area) of several overhead resistance levels. Although a reaction here is possible & at least a brief consolidation likely, the leading components of QQQ appear to have at least a little more upside before any decent resistance so I’m leaning towards a move to the 164.50ish area before the first decent pullback in QQQ.
QQQ 60-min March 26th
SPY also appears likely to continue up to at least the 265 area before the first decent pullback but we’ll just have to re-assess the charts if & when it gets there to see whether or not it will be a minor reaction, something more or if SPY appears likely to continue higher. If that analysis sounds a little wishy-washy, that is exactly what it is. Although I favor at least a little more upside from here, my convictions are not very high. The stock market was down sharply last week & whether we close the week above or below current levels, the odds of some fairly swift & strong rips & dips in the coming days are good. Although my very near-term bias is bullish, I beleive that it would be prudent to be extra-selective on opening new positions for now.
SPY 60-min March 26th