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T.A. Continues To Work Very Well

Just as predicted in yesterday's video, QQQ moved sharply lower following the bear flag breakdown, took out the morning lows and bounced within pennies of the 100.70 target/support that was discuss, all the while forming the positive divergence that I was looking for to indicate that a bounce today would be likely.

QQQ 5 min video screenshot Sept 1st

QQQ 5 min video screenshot Sept 1st

 

The first chart is the screenshot from the video, highlighting the 100.70 target (the Q's hit a low of 100.63 yesterday, before reversing). As today's updated 5-minute chart shows, the Q's did indeed put in that bullish divergence that I was looking for. While hedging up before the close yesterday as I had mentioned if that scenario played out, I closed the QQQ long hedge on this morning's pop and may add back some more short exposure soon as I still favor a thrust down to the 98ish area in the coming days.

With that being said, my confidence in the very near-term direction of the markets is not very high right now & so I'll sit tight until the next objective R/R or unless something convinces me to add long or short exposure. One thing that I'm watching for would be a break below yesterday's lows as that would be bearish & might open the door to a thrust down towards the 98 area.

 

QQQ 5 minute Sept 2nd

QQQ 5 minute Sept 2nd

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Sep 2, 2015 10:30am|Categories: Equity Market Analysis|Tags: , |Comments Off on T.A. Continues To Work Very Well