Tuesday morning I noted the last time we had a hard break in tech. there was a Red Dog Reversal (RDR) at $136.05 on May 18 and sellers could not contain the bounce. On Monday, June 12, we had a RDR around $138.11. I said, “we’ll see if this time sellers can ‘reject’ price in the days ahead around $140.40 – $141.60 to make this time different.”
Here is the chart that was posted.
At the end of the day on Tuesday the QQQ had hit a high of $140.56. This was right into the bottom of the resistance zone I had noted the prior day.
Today, the tech bounce into the resistance zone was rejected and the QQQ went back below the prior day’s high of $140.56. Looks like ‘something different’ may be taking shape.
Yesterday we got the FOMC announcement. For today, we’ll see if sellers can keep it below $138.62 or can buyers step up and reclaim some levels. If they cannot, $137.46 (Monday’s low) is in play.
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