We’ll be looking at the QQQQ today.  I have grown fond of the Q’s as its so cheap and very versatile in the way you can trade the ETF and its options. 

Let’s take a look at what happened in the Q’s today:

qqqq_5min_080219.png

There’s a lot to discuss for today.

  • Price opened with a Gap big gap up today.
  • Price started to descend a little and traded between Resistance 1 and Resistance 2 throughout most of the day today.
  • A double top was formed at resistance 2 and we saw a vicious selloff which filled the gap that happened at the open.
  • We see a double bottom form at the end of day with the final price bar what clearly the bulls won on high volume.

Pivot Points and Price Targets (Supports and Resistance) for Wednesday, 02/20/08, for QQQQ to look out for:

  • Pivot Point = 43.84
  • Support 1 = 43.18.  Support 2 = 42.61
  • Resistance 1 = 44.41.  Resistance 2 = 45.07

It looks like the bulls had a good run at the end of the day for the Q’s and signs looked good to see a possible continuation of that trend (double bottom and the large volume and price bar in the last bar).  Look at the Pivot Point and the first support and resistance to see a clearer early trend.

Until tomorrow, trade safely!