The QQQ hit the low of the day near 77.67, an area of Major support, at 3:30 pm reversal time and powered upward to close @ 77.85 with our 5 minute downtrend still intact. If we open neutral I’d look for the downtrend to end on the 5 minute chart with a clear W pattern formation at or near 10 am or 10:30 am reversal time. You could cheat the entry on a higher high after the retest on the 2 minute chart or wait for price to trade through the crown area of the W formation. If we happen to gap above the $78 level, this would end the downtrend on the 5 minute chart. I would look to take the first 5 minute buy that triggers near 10 am reversal time. My first target long would be back up to the 78.30 level with a longer target of 78.70 area. On the short side, I would have to see price trade through or gap below the 66.60 area. If this happens, I would look to take the first 5 minute short that triggers preferable near a reversal time with a low target of 77.25 and a lower 2nd target @ 76.90. Hopefully we will have another great morning of trading before price goes sideways as is usual before the pending FOMC Announcement on Wednesday @ 2:00 pm EST. Click on chart to enlarge…
qqq 09162013 homework
Longs: Shorts:
CTSH – Break out continuation VLO – Daily RBI
MS – Break out continuation
ORCL – Gap continuation
PCAR – Gap continuation
WAG – 123 continuation