Daily Posts & Analysis

Market looks set to gap way up above major resistance as the QQQ trades near $498 in the premarket. A strong close can signal the market’s intent to return to all-time highs.

The market has spent ALL week consolidating as the QQQ is within a few dimes of its closing price last Friday. There are some risks that have emerged as a result of that. We discuss in today’s Daily Briefing.

QQQ surges to its $493 key line of resistance. A breakout opens a path right up to $500 a share. Nvidia breaks out above its $116 resistance level and reaches mildly overbought conditions.

Fed decision has little bearing on markets today. The QQQ continues to consolidate near $480. Our wait mode continues until we get a decisive move one way or the other. We either need a full breakout above $490 to open up a new range or a breakdown to oversold conditions near $470 to set up reversal.

Market is in the process of continuing its pull-back as expected. Though the selling pressure feels relatively weak and might indicate that we’re in a new full blown intermediate-term rally.

NASDAQ-100 (QQQ) is likely to pull-back to the low $470’s as scenario 1 of our long-term outlook unfolds. There’s an increasingly high likelihood the market goes to fresh all-time highs by late summer.

The NASDAQ-100 is closing in on our $493 price target on the $467 breakout run. $493 represents a 100% retracement of leg 2 in the correction. It’s a major level of resistance.

Earnings has helped propel the QQQ beyond the 20% mark for the rally and it trades a mere $9 below its key resistance and our price-target for the rally.

As we noted in yesterday’s Daily Briefing, the market was overbought, formed negative divergence and was due for a sharp pull-back. Today’s action was totally anticipated and outlined ahead of time.