23Mar10:26 amEST

Tight Quarters

More inconsistent price action this morning is leading to a frustrating atmosphere for traders, as small caps, energy, materials (stopping me out of a HCC trade), and financials continue to pull back all the while the Nasdaq is trying to stabilize and reassert itself in a market leadership role. 

While the potential inverse head and shoulders bullish setup on the QQQ daily chart (ETF for the top 100 stocks in the Nasdaq, seen below in purple) is exciting a good deal of bulls with the possibility to explode higher into April, I must admit I am not crazy about that pattern after a steep multi-quarter uptrend. Typically, the inverse head and shoulder bottom functions better as a concrete bottom. Admittedly we did have a correction in tech of late. But zooming out the chart shows the potential for a trap, too, especially with so many eyes on it. 

Thus, my bias is to respect the well-defined price levels, albeit in tight quarters, on the QQQ. $320-$325, just above, remains resistance to clear, while $310-$312 has been sturdy support.

My plan, in other words, is to pay more respect to the light blue lines on the chart below rather than the widely-watched purple. In fact, ass we talk QQQ is negotiating $320. 

Some recently beaten-down tech plays moving well early on here are NFLX and ZM, with OKTA worth watching to follow suit. 

Hitting for Contact Stock Market Recap 03/23/21 ...

 
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