After a huge gap down in the QQQ this morning and a hard rally back up near the top of the last pivot high, the Q's plummeted in late day trading to finish the day at almost where price started @ 78.74. We are currently in a downtrend on the 5 and 15 minute charts but sideways on the hourly time frame. For Tuesday if we break below the 78.65 area, I'd look to short the first 5 minute sell that triggers in this same area @ 10 am or 10:30 am reversal time, with a target of the 78.30 area and lower targets of 78.00 and 77.70 areas. If we happen to open neutral and rally, I'd be looking for a 5 minute sell setup in the 79.00 area that triggers to get short with the same lower targets as mentioned above. If we happen trade through or gap above the 79.20 area, I'd like to see a base through lunch before attempting a long on a breakout. At this point I believe that all rallies are short able and most important the void is to the downside on the Daily chart of the QQQ.
Daily QQQ 10072013 homework
Hourly QQQ 10072013 homework
QQQ 15 minute 10082013 homework
Longs: Shorts:
POT - 1234 watch AXP - Gap continuation
PCAR - Breakdown continuation