QQQ has rallied 6% in just over 3 trading sessions & may need to take a breather today, especially if this minor uptrend line is taken out with conviction. My minimum target, if a sell signal triggered(via a solid trendline break, would be the bottom of yesterday’s gap (272.39) with a potential 2nd target around 268.20. 280.30ish remains the next upside target if QQQ continues to rally. 60-minute chart below.
QQQ 60m Sept 29th
With some larger price swing due to the around the clock trading, /NQ (Nasdaq 100 futures) have rallied 7% in just a few trading sessions with small divergences in place on the 60-minute PPO & RSI. While the current near-term trend, as well as the intermediate-term outlook, remains bullish the odds for at least a minor correction are elevated at this time with my minimum pullback target shown on this 60-minute chart.
NQ 60m Sept 29th
SPY is trading slightly below the minor uptrend line after stalling out at the 335.12 resistance level. A solid break & 60-minute close above that level would be bullish (unless it fails shortly afterward as a whipsaw signal) while a pullback to the 331.18ish & 329.50ish (gap) support levels is certainly a decent possibility in the very near-term and my slightly favored scenario.
SPY 60m Sept 29th
Bottom-line, with all stock indexes recently mounting a solid advance following the divergent lows on the 60-minute charts, the near-to-intermediate-term outlook remains bullish until & unless we get more than just a relatively minor correction that changes the technical posture of the charts. As of now, the indexes are overbought on the very near-term time frames which increased the odds for a pullback and/or some consolidation before the next leg up. As such, the R/R to initiating new long positions is not very favorable at this time nor do we have any decent sell signals or a strong case for anything more than a very quick pullback short trade, should the Q’s break the trendline with conviction.
Option one for those looking to game a quick pullback via index shorts would be to set BTC (buy-to-cover) limit orders slightly above your preferred pullback target(s) while other might opt to set a trailing stop on a short position or a long position, for that matter, and let it ride. There is still a pretty decent intermediate to longer-term bearish case to be made from the developments that have been highlighted here over the past several weeks just as there is a pretty decent near-term to intermediate-term bullish case. Maybe those cross-currents offset each other with a multi-week or multi-month trading range to follow although the signature of this market in recent years has been one of either full-throttle up or full-throttle down. Best to stay flexible & not get married to any one scenario such as the market ‘must do this or that because…”