QQQ Clever

Clever.

Market decided to form a bullish divergence here instead of reversing after hitting the ‘oversold zone’ similar to last May, Aug and September (see red circles).

Why? Well, market had to make sure to keep things fresh and keep things in check so there is no complacency—you know how is–shake some mofoz out.

Decent size up-gap yesterday, which is holding while Q’s is trading just right on that pivot (see red arrows) of 467 today.

(QQQ Daily Bars)

This bullish divergnece you see right here is pretty potent and massive.

Because, the price constructed very sharp lower low from 460 to 400. However, the oscillator did the opposite creating that definitive higher low (hence the “bullish divergence” label).

Now the oscillator is breaking above the neckline (red horizontal line), it is really finding that momentum here.

If bulls can protect yesterday’s up-gap going forward, I think bulls are going to find a way to ATH level.

But not so fast!

There is a pretty big size down gap 476-467 (about 2% down-gap), this is the ‘boss bear command center‘—bears are going to fight to protect it.