Today's breakdown below the one-month sideways trading range in QQQ is exactly what I have been looking for: Impulsive selling on high volume following a solid break below the 116 level. There is no such thing as a 0% failure rate on sell signals but this one is about as good as it gets, especially considering all the bearish developments in place leading up to today's breakdown. Today's sell-off has already wiped out over one month of trades (candles) as well as taking QQQ back down below the 2015 highs (i.e.- the recent breakout has failed with a potential bull trap scenario now in play).

 

Taking this and everything else that I've highlighted over the last several months, such as the recent extreme contraction in the Bollinger Bands to levels that have, without exception, lead to corrections of 5% or more follow every drop to this level for years, the odds strongly favor that today's sell-off is more likely just the beginning of a much deeper correction.

SPY Bollinger Bands Contractions Sept 9th

SPY Bollinger Bands Contractions Sept 9th