QQQ Likely Triangle

QQQ is Forming a Series of Megaphones inside Megaphones Across Roughly 139 - Would Usually Mean a Triangle

QQQ is Forming a Series of Megaphones inside Megaphones Across Roughly 139 – Would Usually Mean a Triangle

QQQ is forming a series of megaphones inside megaphones across roughly 139, with three gaps already around that level. That would usually mean a triangle is forming.

A triangle at the VWAP of a megaphone (navy blue on chart) would usually be a continuation pattern for a trip to the megaphone bottom (green scenario).  The purple scenario represents a Sornette melt-up pattern at the red megaphone VWAP before a melt-up to another new all-time high at the red megaphone top.

QQQ Rising Wedge

A Downwards Breakout from a Triangle would Likely Target the Bottom of the Red Rising Wedge

A trip to the navy blue megaphone bottom would likely target the bottom of the red rising wedge on the daily chart. A bounce there and breakout from the red rising wedge would target the wedge bottom.

QQQ Bounce

QQQ Just Bounced a Second Time Off the Bottom of its Blue Rising Megaphone

QQQ Bounced a Second Time Off the Bottom of its Blue Rising Megaphone

QQQ bounced a second time off the bottom of its blue rising megaphone on Friday. That’s fussy trading.

A genuine breakout through 141 means another new high. Otherwise QQQ is stalling, forming something like a triangle before the trip to the red rising wedge bottom, a bounce there, and breakdown to at least the mandatory retrace level of 105-106.

QQQ is Trying to Break Down

QQQ is Trying to Break Down Through Its Orange Megaphone VWAP and Light Blue Megaphone Top

QQQ is Trying to Break Down Through Its Orange Megaphone VWAP and Light Blue Megaphone Top

QQQ is trying to break out through its orange megaphone VWAP for a trip to the bottom of the red rising wedge (green scenario).

If opex trading holds the line here, expect another surge to new all-time highs to complete a cop.  The faster the top, the more likely QQQ is to reverse at the light blue megaphone VWAP for a huge move up.

The slower and bigger the top, the more likely QQQ is to go for the light blue megaphone bottom.

Look Where QQQ Paused

QQQ has Broken Out of Its Red Topping Megaphone and is Paused at the Navy Megaphone VWAP

QQQ has Broken Out of Its Red Topping Megaphone and is Paused at the Navy Megaphone VWAP

QQQ has broken out of a topping megaphone (red) on the top of a larger megaphone (navy blue) and is now paused at the navy blue megaphone VWAP.

Because QQQ broke through the navy blue megaphone top to form a topping pattern, and because there’s a Neely set-up for a deep retrace of the move out of the August 2015 crash low, QQQ should go for the navy blue megaphone bottom.

QQQ should Bounce at Roughly the Red Rising Wedge Bottom to Retest the Navy Blue Megaphone VWAP Before a Breakout Downwards to the Red Wedge Bottom

QQQ should Bounce at Roughly the Red Rising Wedge Bottom to Retest the Navy Blue Megaphone VWAP Before a Breakout Downwards to the Red Wedge Bottom

QQQ should bounce off the bottom of the red rising wedge and navy blue megaphone bottom to retest the navy blue megaphone VWAP before continuing down to the critical decision point at the red wedge bottom.

If QQQ has a genuine breakdown through 100, next target is roughly 70.