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While the futures are pointing to a deep green open, that is all going to be for nothing. That gap is going to be filled and the QQQ will soon roll over. Volatility shock has consequences.

With the QQQ rally extending to a record 130-days — 16-days beyond the precious record — there’s now a huge reversal underway that threatens to end the rally.

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Bearish reversal today increases the odds that the QQQ may have topped. At 127-days and with the QQQ struggling to push through the $600’s, the odds are increasing daily.

QQQ reversal in play. The rally is now looking very similar to July 2023 and could easily see a sell-off start next week.

While it feels like the rally is going to continue indefinitely, it’s not. The QQQ is going through its final topping stages similar to what we’ve seen at previous century marks.

The QQQ still hasn’t made a new high in 7-days. If it does, then the rally extends to 123-sessions. Regardless, very compelling evidence points to a top in the markets within 1-3% of where we are trading right now.

QQQ resting $600 as we outlined last Thursday. The market is currently at a higher probability of peaking right here and right now than at any other time in the rally. Looking at pure odds of a top, it’s higher today than in any previous point in time since April.

Today’s intraday pull-back from $596 indicates the QQQ might be forming a bearish consolidation ahead of a second leg lower to $580. We should get an indication of that early next week.