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.

4 Comments (To enlarge images, right click on image & then click "view image") → QQQ is Trying to Break Down

  1. ewtnewbie

    Looks like prices at or below 2420 ESU are being “rejected” as too low and bought up. That of course sets up the “everyone and their brother has a stop a little lower than 2410-2416 to create a waterfall, but not likely on a Friday???? Seems like the auction is stalling out here at 2420-2422 but have to hand it to the sellers, they are doing a better job than normal finally of pushing prices down near those levels. TGIF

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  2. ewtnewbie

    Looks like a flat bottomed MP on the short term chart from 5 am OX time (Chicago) with 2416.50 as the bottom and the 2428 recent high as the 3rd or 4th tag of the top. Trying to break back into the MP now, for another trip to the MP bottom? Lots of convergence of price here at the 2426 level…yesterday’s RTH low, top of this MP, etc… If they hold here, a gap fill is going to be pretty simple on the ES, and that will drive the DOW higher than yesterday’s close since it isn’t nearly as weak as ES and NQ right now. I’m playing a pair trade of long YM and short ES at the moment due to the strength differential. I’ll let them sort themselves out to see which one gets held longer term.

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