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Consolidation Pattern Breakouts Of SPY And QQQ

Published 01/13/2013, 01:52 AM
Updated 07/09/2023, 06:31 AM

A recent post highlighted the consolidation patterns that formed in the Q’s and on SPY. These ETF’s broke out of these patterns Friday so it is important to review the charts to see where the potential moves are.

SPY: SPY formed a triangle pattern and broke out of it Friday breaking above 146.21. The question is where does SPY head to next? Based on the pattern SPY could move 1.90 points which would put it right near the swing highs at 148.14 and 147.18. The 147.18 level will be strong resistance as this is the two swing highs from the September and October. Bottom line is this move represents a continuation of the upwards move but it must be been seen as a potential end move to the latest uptrend, due to the resistance it will be hitting and a pullback is likely at these levels.
SPY
QQQ: The Q’s formed a flag pattern, and broke through it yesterday. The Q’s are different then SPY in that it has not been able to get above resistance and test the highs from the fall. In fact the Q’s are not able to get above the “fiscal cliff” high at 67.34. In order for the Q’s to advance and continue this breakout, it would need to get above this level first. While there is a technical breakout there is still a chance it can fail without the breakout of that resistance.
QQQ

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