No change in the technical posture as the Q’s (QQQ, Nasdaq 100 ETF) has started the day where it left off yesterday. With less than zero (literally, as China has once again upped their retaliatory tariffs) positive news on the macro front, the markets seem to, at least for now, found sellers fatigue with that potential selling climax that I highlighted yesterday where even bad news (again, for the moment) is being shrugged off.
Starting with the long-term weekly chart, QQQ is starting the day where we closed yesterday so no change in the technical posture: QQQ still holding the weekly T3 support level while at rarely oversold readings. Previous (yesterday’s close) and updated weekly charts below.
QQQ weekly April 8th
QQQ weekly April 9th
Zooming down to the short-term 15-minute intrday charts, QQQ is starting the day where it ended yesterday, within the recent trading range but precariously at the bottom of that range with a SOLID break above (green line) or below it (red line) likely to determine the direction of the next direction (upside breakout still more likely IMO). Previous (yesterday’s close) & updated 15-minute chart below.
QQQ 15m 3 April 8th
QQQ 15m April 9th
Once again, stay flexible & nimble as this thing could break either way. I continue to maintain that, despite the very real & potential risk for an outright market crash, should something in the financial system “break”, the R/R is clearly skewed to the upside with the major indexes at key support while at rarely seen oversold reading that typically accompany bottoms and/or double-digit bear market rally.
Long-term swing & trend traders holding out for the additional downside targets on the weekly chart might opt to lower stops on some or all of their short position to protect profits and/or lighten up here at T3, waiting for the next objective short entry to add back or increase short exposure. The day is still very young with no only any good news but additional “bad” news with the latest retaliatory tariffs from China so once again, stay nimble (or light or even in cash, if not sure what to do) & should we finally get a legitimate positive headline on the macro front, don’t underestimate the potential speed & magnitude of the next short covering rally, which could potentially be nothing short of explosive. Best of luck to all.
-rp