QQQ looses recent up channel - Testing support of other major ch

This morning QQQ broke down out of its recent up trend channel from mid-March (blue channel). You can see that it has also just barely broken back down into the purple channel and testing support for the black channel, which it did previously in mid-March. You can also see that it is currently finding support on the mid-line of the red down channel.

This is likely a critical test for QQQ. If we want the bull market to continue, then it must hold the support in the black channel. I think we could see a quick reversal next Monday to regain the blue channel. However, we could break into the black channel and if it closes more than 2 days there, then look for an extend correction into the low $300's if not ultimately down to the purple channel's center line around $288, which would put it right on the 2.618 fib level and back to the bull rally that started with the COVID vaccines.

4h

1D

1W - Let's hope that the major blue channel off the dot com crash through 2016 does not come into play. It is probably where we need to be, but that level of correction would make the dot com bust look mild.

Comment:

3pm on Friday and it will be make or break into closing and Mondy.

Comment:

End of day Friday. It is possible for a big bounce on Monday, but the signs are not good.