$QQQ #micro #1 down – 2 up setup
On the chart below you can see a crystal clean (a)-(b)-(c) up corrective structure of a bounce off the October low:
I count that (a)-(b)-(c) up move as a corrective wave B up that topped. That means a new leg down targeting new lower lows has started.
This morning we can get a bottom of the first a-b-c- move down off the top. Either that a-b-c- move down is wave i down in an impulsive five wave down structure or a wave (a) down in an (a)-(b)-(c) down structure, we always expect a corrective a-b-c up bounce making a lower high upon completion of the first a-b-c move down.
Quite often when the market comes back down to an unfilled “runaway” gap it bounces up strongly off the upper edge of that gap.
I expect to see bullish reaction if QQQ tests the upper edge of that wide unfilled gap this morning (cyan box).
The upper edge of the unfilled gap up is located at 273.85.
In addition, this morning QQQ will make the third consecutive lower low on daily, a good setup for a 1-2 day pullback.