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QQQ & SPY Breakouts

Just a quick reminder that market analysis & trade ideas will continue to be light until I return from vacation this Thursday.

Friday's breakout above the recent trading range on QQQ puts the near-term outlook (bullish) unless the breakout fails this week. The next significant resistance on QQQ comes in around 177.90. Also worth noting is the fact that the measured target (widest point of wedge) of the falling wedge pattern was met on Friday. 60-minute charts below:

QQQ 60-min July 6th close

QQQ 60-min July 6th close

QQQ 60-min 2 July 6th close

QQQ 60-min 2 July 6th close

Likewise, SPY broke above the near-term downtrend line + the 273.91 resistance level on Friday with the PPO signal line crossing back above the zero level which also puts the near-term outlook as bullish unless that breakout fails soon. Overhead resistance levels that may come into play are 276.88, 278.29 & 279.59.

SPY 60-min July 6th close

SPY 60-min July 6th close

Zooming out to the daily time frames, both SPY & QQQ reversed off their comparable uptrend lines last week with the PPO signal line (9-ema) close to backtesting the zero line, keeping that trend indicator bullish for now. Awaiting a break below both of those trendlines as well as bearish zero line crosses on the PPO signal line for the next sell signal on the U.S. stock market.

Keep in mind that earnings season kicks off this week which increases the odds of earnings-induced gaps, particularly when market moving stocks are scheduled to report. The is a link to Earnings Whispers' earnings calendar located under the Tools of the Trade sidebar on the home page of Right Side Of The Chart.

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2018-07-08T20:21:20+00:00Jul 8, 2018 8:21pm|Categories: Equity Market Analysis|Tags: , , , |3 Comments

3 Comments

  1. BIGBADWOLF July 9, 2018 12:16 am at 12:16 am

    Great analysis! I believe financials kick off earnings later this week. However, the volatility of XLF at the money options this week are almost the same as the coming weeks. What could this possibly suggest a trading strategy? I thought with earnings season the volatility should be super high.

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    • rsotc July 9, 2018 11:00 am at 11:00 am

      Quite possibly. I’ll take a look at the charts of the big bank stocks to see if there are any potential setups.

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