I feel very strongly that this is a possibility. Let me make this clear I am not a bear NOR a bull at anytime.. I am simply a trader. I must look at it from all angles. Below you can see the different angles.
-Bears perspective: We are currently trying to test new highs, but today's gap down shows exhaustion from the bulls. The market will continue to push till we reach a major resistance then a leg down is inevitable till we reach a comfortable support. The major resistance is displayed on the chart along with a time-frame as well.
-Bulls perspective: We fumbled this morning but recovered and are now making new highs from the bounce. This will continue till we reach the 300 mark then after we will hang around that price till a push up or bounce off of the .618 fib (294 or something around there).
Anyway trade smart and wait till confirmation from the market. I will keep this idea updated... it was pretty fun and experimental with the sine waves, but I feel pretty confident.
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I'm on mobile right now, but it seems like I was spot on. I'd like to see SPY go test 288 tomorrow
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I see that I am on the trending ideas for SPY so I am going to let ya'll know the position I am taking. I am grabbing a covered call, meaning both a call and a put, because tomorrow we could be set up for a short squeeze. Basically here is my thought on possibilities for tomorrow
I will have a call that expires the 15th and a put that expires next week. Let me know what you guys think... I am always wanting unique inputs on the market.
I like that you included the 14 day RSI because it's indicating that there's actually still more room to run to the upside. Positioning is so important here and there has been so much cash on the sidelines that we are repeating 2019 all over again where FOMO traders capitulate daily and enter the market (light volume that you see), and sellers are few and far between. You won't get that fast cash short opportunity until you can convince people to dump Amazon, apple, msft, Google, etc, all at the same time. The market is actually being rational here, the big cap performers are on fire. Its short investors who are not thinking rationally here because they think high unemployment means Amazon and Google and Microsoft shouldn't be making money. Well, they are not only making money, their stocks are actually getting relatively cheaper every day on an earnigns per share basis. Don't short until that stops holding true.
itsQure
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@Hesham1, I totally agree. The market is going to do what it wants. Bulls have more going for them than the bears.. short squeezes, the fed, FOMO, Johnny come latelys, and other factors.
However, I do think that QQQ is near some level of resistance. We are closing in on that initial sell-off gap and it is going to be interesting how the market reacts will react to it. It could hang around for a cup of coffee till it pushs beyond it or bounce and get a comfortable correction.