After a huge gap up in the QQQ today, the market set the low of the day at lunch time and powered upward taking out the high of the day by closing at 67.21. For tomorrow in the QQQ, I’d look to buy the first 5 minute buy triggered or a sideways base breakout at or near 10 am reversal time. If we happen to gap up again, what for the pull back and buy trigger at or near the $67.00 area at 10 or 10:30 am reversal time on the 5 or 15 minute chart with a long target at $68.30 area. If we happen to gap down to major support which would be the 66.50 area, I would look to play the next higher low long off the 2 minute chart. If we gap below this area and continue lower I would wait for the first 5 minute sell in the market to go short. The 60 minute chart is very extended and a sharp sell off would not surprise me with a lower target area of $65.00.
QQQ01032013
QQQ01032013