Which gap? Bottom of today’s gap on QQQ is around 187.92 with yesterday’s gap around 185.09 although I suspect you are referring to the top of yesterday’s gap. If so, that should like a potential target for today although so far, QQQ reversed around 186.43 & at the time, both /NQ & /ES hit pretty decent support levels at which I posted (earlier today in the trading room) covering my short & reversing to long for a bounce in my trading account. As such, I think that will be the low for today with a rally into the close although I plan to close those longs by the end of the day.

I think even the most ardent bull would find it hard to argue that a short here at the top of the Aug trading range with a stop 1-3% above is not objective. While I thought the last test of these levels back on the 22nd would likely be the last, I will say the same once again.

That doesn’t mean it will or must play out but simply shorting an overbought rally into an extremely well-watched resistance level with negative divergence on the stock futures 60-minute charts screams “objective” to me. Plus, the R/R is extremely favorable since the downside would be 1-3% if stopped out vs. profit potential that ranges from 10% -30% (to my minimum to max. swing targets on QQQ). Of course, one could also shoot for just a gap backfill or a backtest of the downtrend lines on SPY and/or QQQ as well.

Still can’t rule out another run-up & a more convincing pop above those levels to clear out the stops (as that would actually be better for the bearish case due to the stop-raid on shorts & suck in of some more longs) but another failure here at the top of those very well-defined Aug trading ranges would also be quite bearish, especially if followed by an impulsive move down today or next week.