With 20-minutes before the opening bell, QQQ & SPY are currently poised to gap down about 2% & 1½%, respectively. While I was hoping for & expecting a gap down today in order to add to my existing short positions, as of now the gap isn’t big enough for that “trap” scenario that I discussed on Friday as ideally, I’d like to see a gap down of 3% or more in both QQQ & SPY.
The indexes could easily snap back up to positive shortly before or after the open & as of now, the divergences are still intact. As such, I prefer to wait to see how the market trades after the open today before adding to or reducing any of my index shorts.
QQQ 60m May 9th
SPY 60m May 9th