Some patterns are clearer than others, and some are as clear as a bell ringing at the beginning of a new leg down. The latter is the case today with QQQ, the Nasdaq 100 ETF. QQQ Hourly The price chart is showing a dominant downtrend with our Blue Line Trend Model's Buy & Sell signals triggered just after short-term turning points. The most recent Sell was generated at the close of this morning's second hour of trading, right in the middle of the Fibonacci reversal window. Accordingly, the working assumption is that a new leg down has started, targeting a drop below the Jan 21st low of 334.16. With QQQ trading now at 356-357, there are a lot of QQQ strikes that will fall before it's all done. A reversal to above this week's highs around 370 turns things murky. Add it all up and the weight of the evidence is for lower prices in the days/weeks ahead: Hold IWM and QQQ puts.
