We've been following a Wave 2 Up trendline from the QQQ Oct 13 low @ 254 for the past two weeks, making note of several key price levels along the way alert for a break-down that might trigger an acceleration into Wave 3 of (3) down. Today's gap-up open was suspect from the get go, and the BLS jobs number turned the whole market around from net positive to net negative. In so doing, QQQ fell to a low this morning of 275.42, which can be considered an ongoing test of yesterday's low, as well as the two-week long trend line up from Oct 13th. Any break-down now below 275 is a major sell signal with a stop above today's high @ 282.07. Note also that Wave 2 may have peaked last Tuesday (Oct 25) right in the middle of its Fibonacci Retracement Window (@ 38.2%) and is on the verge of breaking down out of the window, which would be a pattern recognition trigger for acceleration into the next leg down. QQQ Daily Bottom Line: QQQ < 275 = Wave 3 of (3) Down Alert QQQ Nov 18th Best Situated Puts
