I have been unable to update my opinions and trades the last few days but will try to post more often. This is a very busy time of year for my other businesses and was unable to post. Anyway back to the market.
The Nasdaq (QQQ) is in a very interesting location.
The market experienced a very sharp sell-off which I marked with the yellow arrow. I was actually hoping for more of a continued move down to retest the $50 which I was looking to buy. The $50 area is a very strong support area that the market has failed to break over the past 3 months. The Nasdaq has since reversed course and is threatening to take out a key pivot at $57.50. I marked this area with a blue arrow.
I believe Nasdaq may be setting up to make a new high. Now the QQQ is holding right above the daily 200ma. An aggressive trader could take a small position if QQQ were to break and close above $57.50. The real test is the resistance area close to $60. The QQQ has tried to break above the $60 mark about 3 times now.
If the market can break above and hold $60, I expect to see a very sharp move to the upside when that happens. The market is still very volatile so I wouldn't set a long term bias until I see $50 or $60 break. This is an environment for trading so I would stay nimble.