QQQ Broke Through its Rising Megaphone Bottom On Tuesday – NQ Retesta Bottom At The Open
PowerShares QQQ Trust Series 1 (NASDAQ:QQQ) broke through its rising megaphone (blue) bottom yesterday and NQ is retesting that bottom now. If QQQ reenters the blue rising megaphone, it’s putting a rising megaphone top on it (purple scenario).
But we have a Neely short set-up from the big red candle on June 9, so there’s a good chance QQQ continues down from this retest. The red megaphone will likely mean a retest of VWAP from roughly the level of the May 18 low. From there we should be watching for crash set-ups back to at least a retest of the breakout through the year-2000 high.
QQQ also has a megaphone VWAP to retest at roughly 100, but if the market’s heading into a blow-off move, it likely won’t get all the way there.
If QQQ breaks out through the megaphone VWAP at roughly 100, it’s going for the megaphone bottom at roughly 70. I’ll post long-term charts after we see what happens with this retest of the blue rising megaphone bottom.