QQQ Maxes Out Price Channel Melt-Up

QQQ is Maxing Out the Price Channel Melt-Up Set-Up Inside Its Blue Rising Wedge

QQQ is Maxing Out the Price Channel Melt-Up Set-Up Inside Its Blue Rising Wedge

QQQ confirmed a price channel melt-up set-up at its last trip to the bottom of the blue rising wedge on the daily chart.  Now it’s maxed out its price channel roll-ups and is heading up into the start of a top.

QQQ can start the top on this melt-up anywhere inside the rising wedge or a little bit through its top.  The only thing it can’t do is complete this rising wedge with an exact tag of the rising wedge top.

The top on this melt-up within the rising wedge can end with a megaphone, head and shoulders, triangle top or smaller rising wedge top.  QQQ could even tag its blue rising wedge top, return to the rising wedge bottom, and then extend the blue rising wedge with two more higher highs between tags of the wedge bottom.

Once ES completes the blue rising wedge, it must retrace to at least the level of the lowest touch on its bottom.  But it could correct a lot further.

When QQQ Retraces to Its Blue Rising Wedge Bottom, It's Also Retracing To the VWAPs of Two Megaphones & Could Collapse to Their Bottoms

When QQQ Retraces to Its Blue Rising Wedge Bottom, It’s Also Retracing To the VWAPs of Two Megaphones (Gray & Navy) & Could Collapse to Their Bottoms

When QQQ retraces to its blue rising wedge bottom it will also be putting in a mandatory retrace to the VWAPs (volume-weighted average prices) of two long-term megaphones (gray and navy on the chart above). If QQQ breaks out through those VWAPs, the next target would be the megaphone bottoms.

Ultimately QQQ must retrace to the bottoms of the blue and silver rising megaphones on the long-term chart above (the blue formation’s bottom is at 42).  But QQQ could extend this move up (purple and rose scenarios) before completing that retrace.

8 Comments (To enlarge images, right click on image & then click "view image") → QQQ Maxes Out Price Channel Melt-Up

  1. AdecsRay

    Moe: Today saw a 10% correction of XIV which had max’d first thing Wednesday open. Very often this will ‘reset’ XIV for a continuation of some kind (ST/MT/LT?). Since we still have another data ‘print’ forthcoming next Monday on the 3-day a/d study and yesterday’s data print did not show an equal/higher spike, it leaves the 3-day study a possible “open’. Also waiting for a good signal on a lower time-frame to confirm. Definitely go with your ‘frothy’ analogy so keeping stops reasonably tight.

    Reply
      1. AdecsRay

        Moe: The a/d study pattern did display what I like to call a ‘phantom-top’ pattern which often applies to more of an XIV pause or reset (in addition to what already has occurred with XIV). The general market will often show some lesser retracement so that the two get back in sync for the next advancement upwards. What is interesting is that XIV did this just below a primary fib extension price level. I will be watching the next advance (assuming that does happen) to see if it wants to stop/pause/blow through this level.

        Reply

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