$COMPX reversal looks imminent here, IMHO.
Further reasons:
Besides the very solid long-term support which looks set for a test
angelfire.com
there are indications from Friday's intraday that a reversal actually began in the last hour, and will continue with force at tomorrow's open.
There might be a test first of critical support at 2314, but Vendit has pointed out that there is a preliminary support level above 2314 which is a likely reversal area; that point is at 2364:
angelfire.com
angelfire.com
I think he's right. I anticipate that at worst, reversal will occur at the 2364 area. But more likely, reversal has already begun.
Note from the 30 minute intraday on QQQ
The second to last candle on QQQ intraday from Friday looks reversal-oid.....last candle consistent with this also, and there are definite (but early) technical signs of life, from extreme oversold levels. Such technical signals at these levels of relative oversold can be very powerful:
askresearch.com.
A similar picture is seen with $COMPX, not surprisingly, but the second to last candle does not have as much "reversal" written on it:
askresearch.com.
Also, on the 25 period Bollinger band chart, note the similarities between where QQQ was trading on Monday relative to the lower BB, and where it traded Friday relative to the lower BB. On Monday, after the lower BB was pierce, QQQ "lifted off" the band, and traded 8 candles and then reversed to the upside. On Friday, QQQ also "lifted off" the band, and traded 8 candles---and then the session closed. I suspect the pattern from Monday will be repeated, and QQQ will rally right here. Market internals indicate to me that this rally will be sustained, and will charge up to resistance levels fairly smartly.
207.61.23.99.
As I write this (1:30 am California time), all the futures quotes are up big time.
Looking very hopeful, I'd say. All signals I am aware of point to imminent reversal, but that doesn't negate a test first of the support levels Vendit so elegantly delineated, charted, and posted. Everything looks to me like any such test will be very successful.
JMVHO, as always,
T |
