September 15th, 2013 QQQ Analysis

Chart is below, and as you can see there was a MAJOR gap up in the QQQ followed by a sell off that lasted pretty much the whole session.

The gap up was supposedly caused by Lawrence Summers withdrawing his name from candidacy to become the next Federal Reserve Chairman after Bernanke steps down in January.  The hard sell off is a mystery in itself, but it was due for a short term dip anyway, so that's most likely the cause.  The gap up probably just gave it extra room (and an extra excuse) to fall.

The futures are down as I type this at 8:25 PM EST.  Perhaps this is the "pop" followed by the "hard sell off" I've been waiting for...

21 Minute Chart

It certainly did a good job smashing downward through a key support level (the bold pink line).  The StochRSI is currently oversold and the MACD histogram is showing some signs of recovery.  Having said that, it's too early to tell if the QQQ will rebound or continue falling.

Check the NASDAQ futures Tuesday morning and use them as your trend chart when making trading decisions for the QQQ.  

Oh, and I WILL NOT be trading on Wednesday as that is when the Fed will announce their tapering plans following the FOMC meeting.  There's too much potential for a trade to go against me during Wednesday's session, so I won't be participating.  I will, however, be actively watching to see how the market responds, and I will be eagerly waiting for an opportunity to take advantage of this!