Still too early to call with conviction but so far, in watching the recent price action in the stock market, key sectors & key stocks as well as reading the recent headlines over the past few days, it appears that there’s a good chance that my ‘paradigm shift’ scenario for the stock market & economy is likely in play.
On the 60-minute chart of QQQ below, the salient nearby price & trend lines to watch today are colored in yellow, including the potential negative divergences, should QQQ make an equal or marginal new high. While those divergences are a potential catalyst for a tradable drop, it would be quite bullish if they are taken out with the PPO & RSI clearly taking out the previous reaction highs.
QQQ 60m July 18th
A solid break (without a subsequent failure) above 297 should open to door to my 301 & 305 targets (preferred scenario). While not my preferred scenario, pullbacks into this zone (white circle) below the minor trendline/292 support & down to the uptrend line/285 support would provide objective long entries or add-ons for QQQ, /NQ, etc…
I’ll also add that this pre-market fade of the overnight rally in the futures (a ~0.6% pullback in /NQ since the 4:40 am high today) as well as QQQ in the pre-market session, as well as a little more downside to the intersecting 292.30ish + downtrend line support levels, should we get that, offers an objective long entry or add-on IMO, despite the near-term overbought conditions.