$QQQ - appears the bears won this one - how to trade it
QQQ Flushed Friday on high volume through the last pivot AVWAP support. This could have a relief rally early next week, but that likely will be faded again. Next line in the sand where we could find our bottom is likely at the 14.6% retracement were the bulls look to regain control and set this wave 4 bottom.
That level (~370) is the 100% extension of wave W off of X top. The 100 extension and 14.6% retracement at the same level as the wave 4 AVWAP should provide solid support. At the very least we will see 3 waves to the upside from that level and BULLS that is your BTD spot. Need to be cautious though because if this correction goes to the 38.2% retracement we are looking at a bottom of 350 a share. Not good.
How to trade this: Bears - Fade rallies that kiss the downtrend line. Until we break above it on volume we are in a bear cycle.
Bulls - Aggressive bulls you want to BTD when we touch the 370 level, make sure to trim profits on rally to the downtrend line as we could easily be rejected and continue down the correction. Or the safe bull way is to set an alert and Buy when we break above the downtrend line on volume!! then stop loss beneath the trend line.
That level (~370) is the 100% extension of wave W off of X top. The 100 extension and 14.6% retracement at the same level as the wave 4 AVWAP should provide solid support. At the very least we will see 3 waves to the upside from that level and BULLS that is your BTD spot. Need to be cautious though because if this correction goes to the 38.2% retracement we are looking at a bottom of 350 a share. Not good.
How to trade this: Bears - Fade rallies that kiss the downtrend line. Until we break above it on volume we are in a bear cycle.
Bulls - Aggressive bulls you want to BTD when we touch the 370 level, make sure to trim profits on rally to the downtrend line as we could easily be rejected and continue down the correction. Or the safe bull way is to set an alert and Buy when we break above the downtrend line on volume!! then stop loss beneath the trend line.