The QQQ gapped down @ open again today & is currently down -1.20%.
What to watch for the bulls:
- Bull target #1 gap @ $280
- Bull target #2 gap @ $283.50
- Test of 9EMA resistance @ $287.85
- RSI is considerably oversold on daily/4HR/1HR/15MIN TFs (can get VERY oversold in major bearish periods, however, so don't bet the farm on this)
What to watch for the bears:
- Bear target #1 Gap @ $275 (we are only -0.35% away from this)
- Bear target #2 re-test June low
- We are currently only -2.55% from the June low
I think that filling our bearish gap target @ $275 is guaranteed for the day as we are about -0.35% away, but the question now is: do we go straight down & test the June low?
Personally, I would think it makes more sense to give the bulls some room to fill the down-gaps & allow for the bears to rebuild some momentum, as the RSI on the QQQ is pretty OS & the DXY is pretty OB & also smashing in resistance.
I don't want to speak in absolutes though, because I remember when the market was dumping in May & the RSIs were so incredibly OS and yet prices just kept puking.
With that being said, I'm looking @ it like this:
- if we nuke past the June low, I'll be glad I have some puts & some shorts on it
- if we get a bounce to fill the gaps & cool off on the RSI, I'll add to my puts/shorts, but I'm not going to jump in here, add more & risk getting my head sliced off with a potentially big bounce to re-test gaps/9EMA.
Stay safe, remain objective, follow the charts & avoid the hype.
What to watch for the bulls:
- Bull target #1 gap @ $280
- Bull target #2 gap @ $283.50
- Test of 9EMA resistance @ $287.85
- RSI is considerably oversold on daily/4HR/1HR/15MIN TFs (can get VERY oversold in major bearish periods, however, so don't bet the farm on this)
What to watch for the bears:
- Bear target #1 Gap @ $275 (we are only -0.35% away from this)
- Bear target #2 re-test June low
- We are currently only -2.55% from the June low
I think that filling our bearish gap target @ $275 is guaranteed for the day as we are about -0.35% away, but the question now is: do we go straight down & test the June low?
Personally, I would think it makes more sense to give the bulls some room to fill the down-gaps & allow for the bears to rebuild some momentum, as the RSI on the QQQ is pretty OS & the DXY is pretty OB & also smashing in resistance.
I don't want to speak in absolutes though, because I remember when the market was dumping in May & the RSIs were so incredibly OS and yet prices just kept puking.
With that being said, I'm looking @ it like this:
- if we nuke past the June low, I'll be glad I have some puts & some shorts on it
- if we get a bounce to fill the gaps & cool off on the RSI, I'll add to my puts/shorts, but I'm not going to jump in here, add more & risk getting my head sliced off with a potentially big bounce to re-test gaps/9EMA.
Stay safe, remain objective, follow the charts & avoid the hype.