Looking at the futures I think it's obvious we gap up here but i want to discuss where i think we'll go.
The yellow line you see Has been our trendline support since our October lows. Friday we fell through that support and tomorrow I think we will retest that trendline/Fibonacci level at around 386.50 - 387. I don't think we'll break through and I wouldn't be surprised if at the end of the day we see that this rally was on low volume.
386.41 fibonacci level aligns perfectly with this trendline (Strong resistance).
If we do close above this level we're headed back to 399 but I don't think we will.
Why? Too many of the mega cap stocks that loss their important levels will gap up tomorrow those former supports now turned resistance; If there is no volume behind this pump those stocks won't overcome that resistance and will lead to QQQ not overcoming 386.
Let's see what happens
The yellow line you see Has been our trendline support since our October lows. Friday we fell through that support and tomorrow I think we will retest that trendline/Fibonacci level at around 386.50 - 387. I don't think we'll break through and I wouldn't be surprised if at the end of the day we see that this rally was on low volume.
386.41 fibonacci level aligns perfectly with this trendline (Strong resistance).
If we do close above this level we're headed back to 399 but I don't think we will.
Why? Too many of the mega cap stocks that loss their important levels will gap up tomorrow those former supports now turned resistance; If there is no volume behind this pump those stocks won't overcome that resistance and will lead to QQQ not overcoming 386.
Let's see what happens
