Possible Breakdown on QQQ

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As I mentioned in the post last night, be looking for a breakout move on QQQ. While the day is still young today, if it closes where it is now it will be a great breakdown. The bollinger bands are expanding today which you want for a true volatility breakout. The market gapped in the direction of the breakout which is also good in this case. And a long bar from open to close (a long red bar in this case) is also good. If the market closes below the lower bollinger band today, then shorts can be entered with a stop one penny above today's high. Then don't exit until the bottom band inflects back up.

Now the hourly chart is oversold on the oscillators, so I would suggest waiting until just before the close to enter a trade to make sure not to get caught at a reversal at the lower band. Remember that average bear market rally would still have about 2 weeks to go before a high, so it is possible we touch down here, then start to rally for another week or so.