The "Qs" Follow Our Script To A "T"
On Sep 2, with QQQ trading at 300.01, down nearly 4 points from its pre-market thrust to a new all time high at 304.02, Mike Paulenoff alerted MPTrader members to the potential danger signals lurking within his chart work. He wrote:
"Just in case TSLA and AAPL weakness represent the first shot over the bow ahead of a significant correction in the NDX, my work on QQQ indicates that a break and close under 298.00 will trigger sell signals that project to 280."
Within hours of Mike's warning, the Qs had sliced beneath 298.00, triggering sell signals in his work that pointed to 280.00 next. (See chart below.) The Nasdaq 100 ETF proceeded to roll over into a nasty nosedive on Sep 3 and 4, just ahead of the three-day Labor Day holiday weekend, pressing beneath Mike's initial target of 280 to a Sep 4 low at 271.80.
By Tuesday Sep 8, QQQ reached a lower corrective low at 269.66, nearly 10% beneath Mike's sell signal at 298.00, and 11% beneath its all-time high of 304.02 from Sep 2.
Mike continued to closely follow QQQ and its key consequential components AAPL, TSLA, and AMZN during the remainder of this past week.
On Wednesday Sep 9, with the Qs at 275.31, Mike wrote: "My BIG picture pattern and momentum work argue that the decline from the 9/02 high at 304.02 to last eve's low at 269.66 (-11.3%) has unfinished business on the downside after this recovery bounce runs its course. The closest target zone for the QQQ rally is 276.20/80, with the optimal target zone being 280-283 ahead of another loop down that breaks 269.66 in route to the 250 area."
QQQ followed Mike's script, recovering to 282.20 within his target zone the very next morning before looping down as he anticipated, breaking his 269.66 support en route to a new corrective low at 266.90 on Friday afternoon.
What's in store for the Qs this coming week?
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More Top Calls From Mike
Back on July 5, Mike Paulenoff alerted MPTrader members to the bullish potential in MRNAs chart.
With the stock trading at 154.68, he showed the charts projection towards resistance at the March 22 high of 188.33, writing: Just maybe, the 6 month base-accumulation period and pattern carved out by MRNA during 2022 after a wicked corrective-bear phase is starting to make its presence felt technically.
Back on July 17, with ARKK trading at 44.22, Mike Paulenoff commented:
ARKK (Cathie Wood ARK Innovation Fund) ... my attached 4 Hour Chart shows the price structure has carved out a May-July Rounded Bottom formation that is putting upward pressure on a key resistance zone from 46.70 to 48.12, and if hurdled, will trigger upside projections to 58-60...
Since then ARKK in fact climbed to a new 7-week recovery high at 49.
Back on Thursday, July 7, 2022, this is what Mike Paulenoff discussed with MPTrader members about the ARK Innovation ETF (ARKK):
Its Time to take a look at the technical setup in ARKK, putting aside the miserable narrative that surrounds ARK fund manager Cathie Woods performance from the February 2021 ATH at 159.70 to the May 2022 low at 35.10 (-78%).
Back on the afternoon of June 30, just ahead of the long July 4th holiday weekend, Mike Paulenoff posted to the MPTrader.com Coverage List the following chart-based commentary about a forthcoming directional price move in the SPY (SPDR SP 500 ETF Trust), which was trading at 379.38 at the time:
From the perspective of my Hourly SPY setup, todays low at 372.56 followed by the powerful rally to an intraday high at 380.
Back on June 17th, this is what we discussed about the TLT (20+ Year T-bond ETF)when it was trading at 112.53:
The TLT put in a big upside reversal day yesterday (6/16/22) from 107.80 to 111.72, closing RIGHT AT the High of 111.72, leaving behind a Bullish Engulfing Candle on my Daily Chart (not shown here). The last time TLT traded at 107.