Eyes On The QQQs For Some Cues
Right now the Nasdaq $QQQ is the most interesting index to me right now. It has been quietly grinding out higher prices behind the $IWM and $SPY but it’s been doing so notably under-performing relative to those other major indices.
It’s once again coiled up and is bumping up against this 108 level which is proving to be stiff resistance. If we were to extend this chart out further to the left you would see lots of supply traded in this area throughout 2015.
Given the SPY and IWM look tired leading us higher, I think it’s on the QQQ’s to give us the next directional cue. If we can get a surge above recent 108 highs, the bulls should get a reinvigorated pep in their step.
However, if we start to roll over here and break below 106 it’s unlikely the already tired SPY and IWM would be able to prevent this from spilling across. In this scenario, it could be the start to that long awaited pullback the bears have wanted for the past few weeks.
106 to 108 is what to have on watch over the couple of days.
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