Earlier today in the market monitor I was trying to explain a pattern I found from April that may help a trader in the QQQ in the coming sessions. Current trading is almost "identical" to what we saw in mid-April. A bear will be licking his/her chops if the past unfolds, but if it doesn't, then that's what is called "DIVERGENCE from the past" and may serve as a heads up too.
NASDAQ-100 Trust (QQQ) Chart - Daily Interval
I see some "similarities" between the QQQ today as that found earlier in April. A nice gap higher, followed two sessions later by the filling of the previous gap higher. After the "3rd-day" and filled gap, the QQQ rallied at the open the 4th bar, but sold into the close, then proceeded to drop lower in the following sessions. Here we are, now the 3rd bar and the QQQ is trying to fill Wednesday's gap higher.
If, and I stress "if" the QQQ were to gap higher Monday morning, a bear wants to monitor the $32 level closely. I would think that any move much above the $32 level could see a significant round of short covering if that type of break took place.
Once again.... we're stressing to bears to be very disciplined with their stops in the NASDAQ-100 (NDX.X), QQQ and stocks that comprise this market.