The QQQ recovered from the morning sell off and price finally went sideways after a healthy rally. Price is currently stuck between 79.02 and 78.70 areas on the 5 minute chart, but on the 60 minute chart the Q's triggered the hourly sell over the last two hours of trading on Monday. For Tuesday, if we open neutral and trade above the 79.10 area, I'd look to take the first buy setup near the 79.00 area with a first target at the 79.25 and a longer target @ 79.50 area. If we happen to open neutral and trade down or gap down below the 78.66, I'd look to take the first 5 minute short that triggers near 10 am or 10:30 am reversal time. Lower targets would be 78.54 area and a lower target of the 78.45 area. My bias is short because of the sell that triggered on the 60 minute time frame, and if we see follow through, I'd expect price to break the last lower pivot at the 78.45 area.
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QQQ 09242013 Homework
Longs: Shorts:
WFC - Daily buy watch C - Gap continuation
JPM - Gap continuation
MET - 1234 watch
VLO - Breakdown continuation