QQQ Breaks Out, Alone

July 8, 2016

July 2016

By Geoff Bysshe


Yesterday the QQQ closed over the July O.R., but it is all alone.

The SPY did break its July O.R. high, but it did not close over it. This leaves the 4 market watch chart in a very mixed state. The QQQ is leading higher, with the IWM still under its O.R. low, and the SPY and DIA are in the middle.

Since the bigger picture, as defined by the market phases and price action relative to the 10 DMA, are positive, I’ll look to follow the QQQ higher if it continues. It will be important for the SPY and IWM to follow the QQQ higher if the breakout is to continue.

One factor that leads me to believe that the QQQ could be real if it continues today is that the QQQ is also clearing its Brexit range high. This may suggest that the QQQ is waking up and may begin to lead the market higher after months of underperformance relative to the SPY and IWM.

Today I posted a video about reading the alerts page. You’ll find it below and at the bottom of the alerts page.

Since the video was made today, it also covers the current state of the market watch charts, and patterns to look to trade now.

The patterns are the same ones covered in the main training video, but the video shows you how clearly you can see them on the alerts page.

Here are the examples covered in the video. Keep in mind there are more on the alerts page.

  1. Consolidation without having closed outside the July OR. This is represented by a number in the “Days In” column. The higher the number the bigger the potential breakout. You’ll find XLP, ATVI, and MSFT all in interesting daily locations with 3 days.
  2. The first bullish closing breakout. This is represented by a “1+” with a green background in the “Days Over” column. Some noteworthy example for today are: CTXS, ESRX, SBAC.
  3. The first bearish breakdown. This is represented by a “1+” with a red background in the “Days Under” column. A noteworthy example of this today is IYR.

See the video for more details: