QQQ (Nasdaq 100 ETF) will offer an objective short entry on a break below today’s low of 167.24. I shared my thoughts on the recent QQQ trade in yesterday’s update (click here to view) & I wouldn’t be adding this trade back if the technical case for a short on QQQ wasn’t solid at this time. Price targets for this trade will be T1 at 161.06, T2 at 158.81 & T3 at 155.79. The maximum suggested stop (for an entry around current levels) is any move above 172.23 and the suggested beta-adjust position size is 1.0.
The reason for holding off for a break of the low that occured shortly after the open today is because that low coincided with tags of uptrend line support on both the /NQ (Nasdaq 100 futures) and /ES (S&P 500 futures) along with negative divergence on both at the recent highs.