The Cubes’ ascent has slowed recently, but there has never been much doubt where they are headed: to 283.72, the ‘D’ target of the pattern shown (see inset). This is a slight upward adjustment from the 283.35 target given here earlier, but the change will have no bearing on how we trade this vehicle. The last ‘mechanical’ buying opportunity came at p=267.52 on Monday morning, but it required patience and guts to stay with it during the ratcheting move lower over the next two days. We can be confident D will be reached because of the way buyers gapped through the midpoint resistance at 267.52 ten days ago. ______ UPDATE (Aug 17, 7:26 p.m. ET): Well, okay, a trend failure at p2=275.62 should not be ruled out, especially since Monday’s bullish effusion stalled a micron above it. We should know within 24 hours whether bulls have the moxie to get past this Hidden Pivot resistance. ______ UPDATE (Aug 18, 6:06 p.m.): 283.72, here we come! QQQ’s lunatic sponsors reasserted their dominance, turning the 275.62 secondary pivot from resistance into a launching pad. Short the target using Aug 28 puts priced under 1.00, but don’t risk more than you are able to lose painlessly. The trade should be initiated with QQQ within no more than 0.05 points of the target.
QQQ – Nasdaq ETF (Last:276.14)