QQQ Levels to Watch
Well QQQ took route three in a very aggressive way. As always, ensure you read the analysis in its entirety and take heed to the line to watch.
Recap...
QQQ Gapped up above the resistance line of 222.75 and 225.15 and as suggested gave way to a rise to new All Time Highs (ATH).
What to watch:
With the breach to new ATHs, there is no overhead resistance.
The MACD is showing us a strong momentum up
The EMAs are expressing a bullish signal
However... More times than not, a huge gap in price is followed by a backfill of the gap down followed by another move in the direction of the gap.
I suspect the gap up today will be backfilled tomorrow move down. Whether it completely fills the gap is the question and lines to watch are indicated.
This analysis is supported by the ND futures currently waining on the 4 hr chart MACD and the ND futures on the 1 hr chart is in a decreasing posture. QQQ itself on the 1 hr chart is increasingly losing momentum which suggest the near term will be to the down side.
I lean towards QQQ eventually completely filling the gap back to 222.75 over the next few days
Caution:
At market close all indicators are positive and there are no over resistance points. There are a number of support on the way down (225.15, 224.00, 222.75). This could create lateral movement or a bounce off any of the either of the support lines. Excitement around Trumps State of the Union that just concluded could fuel a bounce tomorrow during the trading day.
A break below 222.75 opens the door to the white trend line although not expected tomorrow.
Recap...
QQQ Gapped up above the resistance line of 222.75 and 225.15 and as suggested gave way to a rise to new All Time Highs (ATH).
What to watch:
With the breach to new ATHs, there is no overhead resistance.
The MACD is showing us a strong momentum up
The EMAs are expressing a bullish signal
However... More times than not, a huge gap in price is followed by a backfill of the gap down followed by another move in the direction of the gap.
I suspect the gap up today will be backfilled tomorrow move down. Whether it completely fills the gap is the question and lines to watch are indicated.
This analysis is supported by the ND futures currently waining on the 4 hr chart MACD and the ND futures on the 1 hr chart is in a decreasing posture. QQQ itself on the 1 hr chart is increasingly losing momentum which suggest the near term will be to the down side.
I lean towards QQQ eventually completely filling the gap back to 222.75 over the next few days
Caution:
At market close all indicators are positive and there are no over resistance points. There are a number of support on the way down (225.15, 224.00, 222.75). This could create lateral movement or a bounce off any of the either of the support lines. Excitement around Trumps State of the Union that just concluded could fuel a bounce tomorrow during the trading day.
A break below 222.75 opens the door to the white trend line although not expected tomorrow.
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