In the Headlights

With a third consecutive large gap higher on the indices, the market is doing its best to humble the boldly bearish proclamations we heard last week of imminent global doom. 

Still, not much technical evidence is present to suggest this is anything more than a relief rally in an ongoing downtrend. I see plenty of beaten-down, left-for-dead losers like GPRO catching a nice bid again today, but this is happening as the indices run directly into prior price resistance. 

On the QQQ 30-minute chart, below, we can see the Nasdaq's top stocks running into the $102 area, from it which failed last week. But the mere potential for overhead supply does not guarantee resistance. In fact, bears must now regroup and prove themselves again after getting caught in the headlights of this market rally, or the mere concept of resistance will prove to be academic. 

At the moment, we do not have any signs of a reversal down. We have been playing quick longs like LNKD inside Market Chess Subscription Services, and are holding off on new shorts for now. But you can be sure if bears give it a go later today, perhaps after the Fed Minutes, the we have several go-to ideas on the radar.