Cup/Handle Long off Large Dark Pool Supports $QQQ $NDX

We have waited patiently for the OCT 9 gap to be filled. This may be the trigger area near the 61.8% fib level from the September high to low. The 12+ million QQQ dark pool level should show support.

Commento:

Commento:

Remember that DJI and SPX election year seasonality show at some point a buying into the election and beyond to the Q4 FOMC.

This year can be different, since the election may be contested if there is not a clear winner on Nov 3/4.

Commento:

Once the OCT 9 gap (OCT 12 dark pool level shown) was broken it surged much deeper.

Looks like they want to fill the Thursday OCT 8 gap now.

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NDX futures are traveling down in a clean parallel channel. We may keep doing this until next week on Monday, OCT 26.

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Rare oversold alert for SPX futures. The percentage of down days over the last 7 days reaches 0%.

This occurred only a few times in the past 10 years.

2018

2016 (Right before election)

2008

Commento:

Standard usage of this signal from Larry Connors is to buy into it, and close the trade when the metric crosses back over the mid (50%) line.

Commento:

QQQ hits the OCT 2 dark pool level, and barely misses the OCT 8 gap fill here.

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I am staying away from tech and focusing on SPX, DJI, Russell 2000 into the election.

Commento:

YIKES.