As I stated before leaving for vacation, any new highs in SPY would simply extend the existing negative divergences & not have any material change on the technical posture & outlook for the stock market. I’m watching for a move back down below 294 & a bearish crossover on the PPO to help firm up the case for the next major leg down in the equity market. SPY daily chart below.
SPY daily July 5th
Deja vu?… QQQ has once again put in a potential double top with negative divergences intact as it did just before the Q4 correction. Daily chart below.
QQQ daily July 5th
Zooming down to the 60-minute charts, the recent marginal new high in SPY simply extended the bearish divergences that were already in place at the previous high from June 20th, with virtually no change in the technical posture & outlook for SPY. A break below this uptrend line will likely trigger an impulsive wave of selling.
SPY 60-min July 5th
Likewise, today’s gap down in QQQ is a rejection off the key 191.30ish resistance level/all-time high in QQQ with negative divergences in place just as with the failure at this level back in early May.
QQQ 60-min July 5th