QQQ Selects A Megaphone

Published 07/28/2017, 01:40 PM
Updated 07/09/2023, 06:31 AM
QQQ
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IXIC
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QQQ Selects A Megaphone

QQQ Selects a Megaphone Top

Yesterday at the open I showed that QQQ and NQ had a choice of plunging to start a megaphone top or continuing up to form a rising megaphone or rising wedge top.

The NASDAQ put in a little plunge to choose the megaphone top then promptly retraced to the megaphone (navy blue) VWAP.

QQQ could plunge straight from here to the bottom of the red megaphone (pink scenario), retrace to the red megaphone VWAP, then keep going down. But it’s a strong favorite to put in another move to the navy blue megaphone top (green scenario). That’s because it broke out of the light blue rising megaphone without having formed a proper head and shoulders top inside it.

And it could keep megaphoning after that to morph the potential H&S top into a rising wedge top (purple scenario).

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