As a follow-up to today’s earlier post with the key technical levels & developments to watch for on the /NQ & /ES E-mini futures, here are the 15-minute charts of SPY & QQQ with some comparable levels & potential developments to watch for.
A solid break below 289.40 is likely to be the catalyst for a move down to at least the 287.67 level & quite likely the 286 level on SPY.
SPY 15-min Aug 31st
QQQ briefly overshot the 186.22 support level on the initial thrust down following yesterday’s break below this 15-min rising wedge pattern. Hard to say whether or not QQQ will backtest the wedge before the next thrust down but I favor a move down to at least 184.77 & quite likely the 182.65 level.
QQQ 15-min Aug 31st
Essentially, we have a minor sell signal on QQQ following the recent trendline break although that trendline isn’t very well defined & this is also just a 15-minute time frame without any sell signals on the more significant 60-minute & daily charts. More importantly, SPY is still above trend as well as the 289.40 level. As such, we need to see those levels on SPY, as well as yesterday’s reaction low of 185.80 on QQQ taken out to provide a fairly decent sell signal for a pullback trade on either or both of these major large cap indices.