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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.

While there’s near-term risk for a sharp pullback taking shape, there are repetitive aspects to the market that suggests significant more upside in the intermediate-term.

Market taking a breather after a strong week of trade. Long-Term outlook remains the same.

NASDAQ-100 has pushed above key psychological resistance at $470 and is now looking to confirm its breakout. A few more point of upside and we may have that. Same with the SPY and $548.00.

The NASDAQ-100 (QQQ) is approaching its critical breakout point at $467 a share. This could pave the way for a run up to $493 as we outlined this week. The SPY is making a corresponding run at its $548 resistance level.

With today’s big move to the upside on the administration’s softening stance on China, we’re starting to get a lot of clarity in the long-term direction of the market.

As we noted yesterday, the third leg down was on the weaker side and the rebound we’re now seeing sort of illustrates that quite clearly.

Today clearly indicates the market is on a third leg down. But volatility is weaker and the distances needed to sustain the sell-off are simply too great at this point. Market is likely to fully bottom on this leg lower.