A break below the uptrend line/triangle pattern, 181.46 & Aug 5th low should open the door to the next impulsive leg down in QQQ.
QQQ 60-min Aug 28th
Likewise, a break below the 284.88, blue uptrend line & the Aug 5th lows should open the door to the next impulsive leg down in SPY.
SPY 60-min Aug 28th
Keep in mind that support is support until & unless broken so one way to look at this is we have the major stock indexes currently trading on or just above key support. As such, the market could very well hold & reverse off the support levels so whereas those bullish on the market could go long here with a stop somewhat below the bottom of these support zones, those bearish might opt to hold off an adding any short exposure until/unless SPY & QQQ clearly take out these support levels. Should the market rally the SPY 290ish & QQQ 186ish levels remain the first key resistance levels followed by the downtrend lines & top of the current 3+ week trading ranges.
I’m also monitoring some potentially bullish developments with several of the market leading FAAMG+I stocks (FAAMGs + INTC) at or near support with bullish divergences on the 60-minute time frames. More to come on that soon.