Quick one on QQQ today, as you can see we are a hair away from the 1.272 fib projection ($199.42) from the prior move up (beginning in 2008 at the lows to the swing high/ low in 2015).
Will this act as resistance? I would think so, we may have a few more positive days, but these fib levels typically act as quite substantial resistance, this is ignoring the clear rising wedge that is present also, which unto itself would be reason to begin to think about hedging.
Targets:
Personally i would like to see a continued push higher on high volume above this level, whereby it may act as support rather than resistance, but given overall market conditions, barring substantial market-driving news, i do not see this as a likely outcome. I favor a fall to between the $185 - $175 level, possibly as low as $170 near-term, based upon fib retracement levels from the swing low in December 2018 to the current highs.
Only time will tell, however my internal metrics are beginning to signal caution, as a result i would also suggest investors and traders alike begin to close their winners, take profits off the table and wind down some of their exposure, at least until these patterns resolve, one way or the other. The last time my metrics began to signal a switch to risk off, savvy traders were able to pocket some great gains and avoid some nasty losses. ("Time to Hedge SPY" Article)
Will this act as resistance? I would think so, we may have a few more positive days, but these fib levels typically act as quite substantial resistance, this is ignoring the clear rising wedge that is present also, which unto itself would be reason to begin to think about hedging.
Targets:
Personally i would like to see a continued push higher on high volume above this level, whereby it may act as support rather than resistance, but given overall market conditions, barring substantial market-driving news, i do not see this as a likely outcome. I favor a fall to between the $185 - $175 level, possibly as low as $170 near-term, based upon fib retracement levels from the swing low in December 2018 to the current highs.
Only time will tell, however my internal metrics are beginning to signal caution, as a result i would also suggest investors and traders alike begin to close their winners, take profits off the table and wind down some of their exposure, at least until these patterns resolve, one way or the other. The last time my metrics began to signal a switch to risk off, savvy traders were able to pocket some great gains and avoid some nasty losses. ("Time to Hedge SPY" Article)
