QQQ levels to watch continue
Excerpt from yesterday's post:
"1) Preferred: Price breaks down and price action bounces off the 219.30 support line and rallies back to all time highs 225.15
I lean to preferred #1 due to Microsoft strong performance and an expected strong performance by Amazon earnings enticing investors to buy and drive the price up before and after earnings on Thursday and Friday."
Lets review what happen...
1) Price gapped down at open and hit a peek low of 219.69 (0.39 off the target of 219.30). This is largely due to the lack luster news from FB.
2) Second half of the day the price rallied on anticipation of Amazon earnings
Fundamentals:
Amazon Stock rose 10.97% after regular trading hours on news of fourth-quarter revenue up 21% and earnings per share were $6.47, compared with analyst estimates of $4.04 a share, according to a survey by FactSet.
Amazon posted huge news in most of its services and became only the second US Company to reach a valuation over Trillion Dollar behind Apple.
What to look for:
1) Preferred: Price breaks breaks through the 222.75 resistance line and rallies back to all time highs 225.15 rallying on the Amazon news
2) Option 2 from yesterday was busted with the Option 1 partially playing out (discard)
3) Less Likely: Price closed today at the resistance line and the over head resistance holds. Morning comes and the price recedes back towards the double support of the white trend line and 219.32-219.69 support area
If (3) plays out we get another set of options but I won't get into those until we see how Friday plays out.
Caution: If price breaks below the double support of the white trend line and 219.32-219.69 support area, this will give way to a much further downward slide. When the white trend line breaks, that will likely signal the end of the bullish rise in the near term.
Currently this is likely a consolidation zone at the top near All Time Highs (ATHs) while investors decide if the bullish moment will continue. Or will they take profits before a massive sell off. The market has been very resilient but what goes up must come down. I favor a sell off soon within 60 days or less. However, this current kick back rally (1) fueled by earnings news will likely pushes QQQ near ATH. A close above the current ATH could signal a continued gradual rise in the broad market
Happy Trading!
"1) Preferred: Price breaks down and price action bounces off the 219.30 support line and rallies back to all time highs 225.15
I lean to preferred #1 due to Microsoft strong performance and an expected strong performance by Amazon earnings enticing investors to buy and drive the price up before and after earnings on Thursday and Friday."
Lets review what happen...
1) Price gapped down at open and hit a peek low of 219.69 (0.39 off the target of 219.30). This is largely due to the lack luster news from FB.
2) Second half of the day the price rallied on anticipation of Amazon earnings
Fundamentals:
Amazon Stock rose 10.97% after regular trading hours on news of fourth-quarter revenue up 21% and earnings per share were $6.47, compared with analyst estimates of $4.04 a share, according to a survey by FactSet.
Amazon posted huge news in most of its services and became only the second US Company to reach a valuation over Trillion Dollar behind Apple.
What to look for:
1) Preferred: Price breaks breaks through the 222.75 resistance line and rallies back to all time highs 225.15 rallying on the Amazon news
2) Option 2 from yesterday was busted with the Option 1 partially playing out (discard)
3) Less Likely: Price closed today at the resistance line and the over head resistance holds. Morning comes and the price recedes back towards the double support of the white trend line and 219.32-219.69 support area
If (3) plays out we get another set of options but I won't get into those until we see how Friday plays out.
Caution: If price breaks below the double support of the white trend line and 219.32-219.69 support area, this will give way to a much further downward slide. When the white trend line breaks, that will likely signal the end of the bullish rise in the near term.
Currently this is likely a consolidation zone at the top near All Time Highs (ATHs) while investors decide if the bullish moment will continue. Or will they take profits before a massive sell off. The market has been very resilient but what goes up must come down. I favor a sell off soon within 60 days or less. However, this current kick back rally (1) fueled by earnings news will likely pushes QQQ near ATH. A close above the current ATH could signal a continued gradual rise in the broad market
Happy Trading!
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