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Stock Market At Resistance

QQQ (Nasdaq 100 tracking ETF) is currently backtesting the trendline from below while working off the near-term oversold conditions. An impulsive reversal here would could be the catalyst for a thrust down to the 177.80ish* level (T2, *incorrectly listed as 117.80 in the callout text on the chart below). 120-minute chart below: 

QQQ 120-min Sept 11th

QQQ 120-min Sept 11th

Likewise, /ES (S&P 500 E-mini futures) is currently testing the 2894 former support, now resistance level where a reversal is also likely. 60-minute chart:

ES 60-min Sept 11th

ES 60-min Sept 11th

Any significant advance in the major indices much beyond these levels would certainly make obscure the near-term technical picture & decrease the odds of any of the additional downside targets in QQQ being hit soon but as of now, it appears that today is just a counter-trend rally in a downtrend off the August 29th (SPY) and 30th (QQQ) highs with more downside to come. If so, this will likely be the most objective shorting entry or opportunity to book profits on index longs over the next several weeks & possibly months.

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2018-09-12T14:12:29+00:00Sep 11, 2018 12:28pm|Categories: Equity Market Analysis, Unofficial Short Ideas|Tags: , , , , , |2 Comments

2 Comments

  1. nswenson520 September 11, 2018 12:45 pm at 12:45 pm

    I always forget to use log scaling! I traded this wrong this morning as I though earlier it was testing trendline. Thank you!

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    • rsotc September 11, 2018 1:40 pm at 1:40 pm

      Seems that the majority of charting platforms default to arithmetic/linear scaling which is fine for a lot of securities but not for those with a fairly large differential between the lowest & highest prices on the chart that is being viewed. I just have all my 60-min, daily & weekly chart templates saved to log scaling as it makes a huge difference on the long-term (e.g. 10-year) charts of big gainers like AMZN, AAPL or QQQ.

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