313$ on the QQQ has acted as resistance many times in the last year and has proved to be a fickle mistress to stay elevated passed. The similarities between now and the middle of August last year are strikingly similar and we can see that 313 when re-tested was broken. If the NASDAQ wants to stay elevated and potentially have another leg higher from where we are now we are going to need to see 313 hold support and price consolidation at this level. If it breaks I would expect a large decline to follow. I would not rush into any risky 0DTE or weekly call options either at this level given that we WANT consolidation. In fact, if you're bullish consolidation at this level would be an incredible thing as a raging hot stock market will potentially cause the FED to raise rates an additional time. Given this uncertainty combined with the unknown March CPI print, I would be very cautious entering into long positions without this consolidation.
Not financial advice
Not financial advice
Comment:
Past results do not predict future performance. I am now going to throw that cornerstone of trading out the window and base my entire hypothesis on the fact that almost always on the CPI print whichever direction the market moves, it rebounds and heads the in opposite direction.