Stick saves are always a possibility with any breakdown but there is so enough evidence pointing to a sharp correction likely coming soon that I’d much rather have some shorts heading into the weekend (unless we get some kind of crazy reversal & big green close on QQQ) than to risk having to potentially chase a big gap down Monday morning & miss out on an objective short entry.
Also, consider that most of the sectors & stocks that have been highlighted as some of the more bearish & offering objective short entries over the past couple of weeks, such as energy & financials, have already rolled over & provided decent gains (on shorts) so far. As such, I don’t view this sell signal on the broad market as a ‘hard entry’ for shorts, rather the next objective time to add to existing short positions that I’ve been scaling into as well as entries on some of the recent short setups, such as TSLA on the break below 802 so far today. Started position here on the break below with a 2nd lot before the close if TSLA is poised to close solidly below 800 & one more/final lot next week if today’s breakdowns stick.

Correct, QQQ went on to break below the trendline since this post was published. Too early to rule out a stick save (QQQ rallying back onto or above the TL by the close today) but as of now, it is clearly below the TL, providing a sell signal that would be further confirmed if QQQ can print a solid close below the uptrend line today & especially if it follows through with another red candle on Monday.
Also, watch those levels on AAPL & TSLA. MSFT is still comfortable above the recent breakout for now but bearish if it falls back down well below 228.

QQQ has since broken down, triggering a sell signal on the major stock indices. Unless they can rally the Q’s back up to or above the trendline for a stick-save by the close today, the sell signal on the stock market should translate into a drop in oil as well as the energy sector (XLE, XOP, XES, which would mean DRIP rallies). DRIP should run if it takes out 21 & the breakdown in the Q’s sticks today & into next week.

Do you expect this to happen during the end of the trading? Sell signals seem bearish, many try to pull out just half hour before the weekend?