Hi Shoppers,
Mr. Bessent at the US Treasury is trying his best to keep yields lower.
This was our headline today:
And he got what he wanted (albeit for the time being) with the 30 year yield rolling over. Look at that giant red candle today stopping right at my pitchfork support:
Now, if the market shrugs this off, which I think it could, we will trade much lower.
The QQQs are already giving us a warning. It did not trade its previous high when the S&P 500 made new all time highs. It has also gapped down below my median line yesterday and continues to hold the gap today:
The rule with gaps is you maintain the gap for two or three days and you continue in the same direction, in this case, lower. I think that is what is going to happen in the QQQs.
Today we have bounced off the 50 day moving average but I believe we will trade down to the bottom of the channel at $701.56.
This will perfectly close that gap created on August 4th.
You heard it here first. Trade Accordingly.
Thank You For Reading… See You Next Tuesday,
Licia Leslie