Breakout or fake out? Both QQQ & SPY have gapped above the Friday’s bull flag continuation patterns today with SPY also gapping above the 289 resistance level while QQQ runs into my ‘max. preferred bounce target’ of 183. The breakouts are bullish, especially because they occurred on an impulsive move above the flag pattern so from this point, it would be bullish if indexes continue to build on these gains throughout the trading session to print a solid close above these resistance levels while quite bearish if they reverse & move back down below the flag patters, as that would be a false breakout/bull trap. I’m still favoring the latter but will respect the former as I will no longer continue to scale into index shorts above these levels although my stops are still comfortably above for now. 60-minute charts below.
Stock Indexes Gap Above Bull Flag Patterns
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