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SPY & QQQ Key Support Levels & Targets

The markets gapped down to some pretty significant support levels today (and/or hit those levels in pre-market trading before reversing): the 203ish area on SPY & the 104.50ish level on QQQ. While this first tags of those key levels in a while is likely to produce a reaction, which so far it has, with the longer-term bearish case that has been made here in recent weeks, it would appear to me that the reactions off these levels will be fleeting & it is only a matter of time, most likely next week at the latest, before those levels give way.

I've listed a couple of swing targets/support levels on the QQQ daily chart & will follow up with some targets for the SPY, IWM & some of the sector ETFs that I've been highlighting recently. I've also included an updated 1-minute chart of the GBP/USD, along with the chart posted last night. As I've been positioning for what I believe will likely be the next major leg down in the markets, I haven't covered any short on today's move but instead, will be looking to add additional short exposure on this bounce & then again on a break of those support levels (while also moving those cash balances that I swapped from dollars to pounds last night back into dollars as I just wanted to make a few percentage points on the initial bounce following the over-reaction last night).

Bottom line: A lot of technical damage has been done to the charts or, another way to phrase that would be that the bearish case, which was already in place, has very much been firmed up today with the breakdown of the SPY/$SPX below the Ascending Broadening Wedge pattern following the divergent high on the daily time frame. Any bounces into resistance should provide objective shorting opps or add-ons to existing short positions. Updates to existing trades as well as new trade setups will follow throughout today & over the weekend.

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Jun 24, 2016 10:29am|Categories: Equity Market Analysis, Forex (Currencies)|Tags: , , , , , |5 Comments

5 Comments

  1. Teeps01 June 24, 2016 10:55 am at 10:55 am

    Hi Randy
    Just wanted to say thanks for flagging up the $/£ trade, very nice move to catch & appreciate how quick you were to get it out.

    Look forward to your thoughts on IWM as quite a bounce back today plus if you have time a look at XOP, XLB & AMZN would be appreciated

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    • rsotc June 24, 2016 11:59 am at 11:59 am

      YW Teeps01 & I plan to post quite a bit of charts and probably a video or two between now & the end of the weekend so I’ll try to include updates on those 3 symbols. As I mentioned in the trading room earlier, I would be shorting into any rips, especially those into resistance now as regardless of the fact that Brexit was the trigger (which is irrelevant IMO as the charts were already reflecting a correction & this this just happened to be the catalyst to kick it off), there was some serious & almost irreparable damage inflicted on the charts today although we still need to see a solid break above the support levels that I mentioned above (say today’s pre-market lows to be safe) in order to drive the nail into the coffin. As such, barring any hold & sustained reversal off today’s pre-market lows, XOP, XLP & AMZN all look to be headed substantially lower in the coming weeks. For now just watching for a break of SPY 203 & QQQ 104.40-104.50.

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      • pangblood June 24, 2016 12:04 pm at 12:04 pm

        I’d prefer a video, since there’s quite a bit to digest. Thanks Randy!

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        • rsotc June 24, 2016 12:12 pm at 12:12 pm

          Thx for sharing your preference pang. I agree there is a lot to cover. Might even break it down into a few smaller videos (gold & GDX; equity markets; sectors; etc..) along with some static posts/charts.

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  2. Teeps01 June 24, 2016 12:15 pm at 12:15 pm

    Randy
    Sounds like an excellent idea to split vids. Find the latter a great way to learn hearing & seeing your thought process.

    Thanks for the update on the above.

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