Hi everyone! Let’s look at charts for DIA, SPY, and QQQ.
If you prefer trading with the trend, it’s probably a better idea to wait for a pullback in the indexes, then go long for a better risk reward ratio. If you are aggressive, you may decide to short DIA with a target of about 251-253, and a stop loss near 262.
The SPY, which tracks the S&P500, also has the same gap as DIA. Staying long here in the short term doesn’t make much sense, so I recommend either selling now and waiting to buy on a dip, or going short here.
I originally mentioned that QQQ would be the top choice to short, but now it looks much stronger than the other indexes. I’m neutral on the index with a slight lean towards being bearish still. However, I would short DIA or SPY instead of QQQ at this point.