Hello all! This is an early pre-weekend update because the markets are moving a lot. It looks like we are at a neutral price level which isn’t a good place to trade (right between support and resistance).
The most notable support and resistance levels are shown in the daily chart of QQQ at the bottom of the page. The first resistance level is 220, which I suspect will hold at least until the end of next week. I actually had a short limit order set for 219 this week, but canceled it and made an equivalent order on Facebook instead (which sadly never got executed because Facebook has been underperforming QQQ).
For buyers, the most notable level to buy at is the low 200 price range where the initial panic selling lead the index to. Although I wouldn’t take a trade here because the risk/reward isn’t favorable to go long or short, I would be looking to buy near 200 and shorting near 220 (with targets at 220 if going long or 200 if shorting). Our stop losses would be about 10 in either direction.
Any gap tomorrow can be aggressively faded, meaning if we gap down a lot (2%+), you would go long and look to sell when the index filled the gap (for a quick day trade). The same goes for if we gap up tomorrow.
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