Update on the Falling Wedge Trap

One of the more interesting takeaways from the failed falling wedge upside breakout in the Nasdaq leaders yesterday and today (discussed in real-time here) is how much buying power and shaking out of shorts has already been used up, not just in the cash session yesterday but also with the futures shooting higher overnight. 

On the updated 30-minute chart of the QQQ ETF, below. clearly the falling wedge trapped in a new batch of longs. Clearly, the FANG weakness seen in AMZN NFLX, even PCLN and biotech is not helping the cause. 

And now comes the issue of whether they have summons the strength to regroup for the third time this week. For Members, we have been discussing some of the subtle action in the VIX ETFs, to boot. 

But if bulls cannot even muster a close back over $103 at this point on QQQ it is likely a sign that buyers are quickly losing interest in another heroic late-day rally for a respectable finish.