The intraday bounce that was posted as a likely possibility in the trading room about an hour ago (Gold access required to view that link) has now brought both QQQ & SPY back to test some significant former support, now resistance levels from below. QQQ backtesting the key 174 support/resistance level. A solid break could spark a rally while a failure here would likely spark another leg down (my preferred scenario).
QQQ 15-min 2 Oct 18th
Not by coincidence, SPY is also backtesting the 277.15 support/resistance level from below. Bottom line is that this appears to be an important battleground for the bulls & the bears as a failure here & close down near or below today’s lows would inflict some significant damage on the daily charts while a recovery of these levels, especially a close on or above 175 in QQQ & 278.90 in SPY would keep the case for a potential lasting rally off last week’s test of those major trendlines & 40-week EMAs. I still favor the former over the latter but will adjust my outlook if the charts start to convince me otherwise.
SPY 15-min 2 Oct 18th