$QQQ - Here's my take.
Nasdaq filled the gap and turned lower. Classic gap fill reaction. Upper gaps act as resistance, lower gaps act as support. We know this. โ๏ธ
Today we pulled back to $725. That's horizontal support that acted as resistance last week. It also aligned with the 9EMA pullback which is perfectly normal price action.
What I'm seeing is a very controlled consolidation since May. $QQQ has been dancing in a 40-point range.
Here's the sequence:
Market ripped from April to mid-May without stopping. Next stage after any strong move is sideways and backfill. That's exactly where we are.
Short term upside target: $738.
The real move starts once we clear $740. That ends the consolidation and we break out.
$SPY breakout level is $750. Already holding up well. Same consolidation pattern as Nasdaq.
July is historically a bullish month. And with indices refusing to break below support despite all the negative headlines, the market is sending one message:
"I want to go higher."
One thing to keep in mind - it won't be a straight shot up like April. The market is trading more normally now. Pullbacks will keep showing up. Don't be surprised by them.
That's it. Keeping it simple.
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