Invesco QQQ Trust, Series 1Updated QQQ volume drop, mixed news day
We had a low volume day on QQQ , <=65M, which has been coinciding with reversals YTD. Tops see vol drop before or at the top(white vertical) and Bottoms see a vol drop after or at the bottoms(Black vertical). For more info on this phenomenon, check the related idea below.
We're also seeing a similar bar pattern in the yellow circles. History doesn't repeat, but it rhymes. I made some copies to plot possible paths.
The vwap from 1/24 (red) has been a major resistance/ pivot , so Bulls need to establish support above to confirm bull tomorrow and beyond. Being above the POC, regression curve and 2nd LRL are all bullish . However, another 1/24 vwap rejection might be the last test in this range for a while, and fall fast. You can make a case either way, but I'm leaning bear for Thur and/or Fri. While writing this QQQ has been dropping.
Bulls were excited about JPOW's 25bps opinion, but there will still be an FOMC vote. So there could be a surprise, but less likely. There's a ton of puts for the monthly, so FOMC might be a very bullish event as we gain clarity on their plans and the year ahead. A lot of mixed news elsewhere today, tho; and uncertainty still with the Ukraine invasion. So be careful! Good luck.
We're also seeing a similar bar pattern in the yellow circles. History doesn't repeat, but it rhymes. I made some copies to plot possible paths.
The vwap from 1/24 (red) has been a major resistance/ pivot , so Bulls need to establish support above to confirm bull tomorrow and beyond. Being above the POC, regression curve and 2nd LRL are all bullish . However, another 1/24 vwap rejection might be the last test in this range for a while, and fall fast. You can make a case either way, but I'm leaning bear for Thur and/or Fri. While writing this QQQ has been dropping.
Bulls were excited about JPOW's 25bps opinion, but there will still be an FOMC vote. So there could be a surprise, but less likely. There's a ton of puts for the monthly, so FOMC might be a very bullish event as we gain clarity on their plans and the year ahead. A lot of mixed news elsewhere today, tho; and uncertainty still with the Ukraine invasion. So be careful! Good luck.
Note
oops bull mirror pattern didn't come out rightNote
Also could have included Feb 1/2 as tops. Tho the vol was above 65M, it was under the volume MA at the time. So counts as a drop in volume.Note
s3.amazonaws.com/tradingview/snapshots/u/uGOElGqD.pngThis confirms my bear idea if it continues any lower.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.