After ceding the spotlight for a while to the small-cap IWM, the Cubes are back in fashion, moving toward a 355.05 target with a series of lunatic leaps. One of them created a gap through the 326.27 midpoint Hidden Pivot, leaving zero doubt that the target will be achieved. The pattern is an odd one, with a very elongated A-B segment, but it should be good enough for government work. In practice, this means that any one-level pullback can be bought ‘mechanically’. So far, none of the retracements have qualified, but that doesn’t mean we can’t initiate trades using rABC patterns of smaller degree. Stay tuned to the Trading Room if you care. _______ UPDATE (Apr 19, 9:59 p.m. EST): If the decline steepens and hits p=326.27, that would trip a ‘mechanical’ buy, stop 316.67. Here’s a chart that shows it.
QQQ – Nasdaq ETF (Last:338.88)