This is the QQQ chart with the same downtrend line (Green) and support line (Yellow) that I posted 3 hours ago. I zoomed it into 5 mins to help everyone see it more clealy
1: After QQQ topped 440-442 at noon, it has gone through a perfect text book downtrend line at "low volume" throughout the afternoon (I explaiend earlier why its would go downtrend on my earlier post with 30 mins chart).
2: Bigger picture: QQQ can not close bleow yellow support line 432 otherwise the bounce is offically dead. Traders know this and have been shorting QQQ the entire afternoon while keeping QQQ within the range of these 2 lines, with low volume
3: However, this started to change before the close (the last 3 bars representing the final 15 mins). We can clearly see QQQ pushed up with "significantly higher" volume, and eventually breaks through the upper greenline.
This is the result of day traders covering up all their shorts + buyers come in to bet for continuation of the bounce
4: Tomorrow, if we open above 434 (the trendline) and close near 446, it will confirm the bounce and we will see 465 +/- and that is where we need to start buy Put.
Good luck, everyone!
