With a loss of market structure and momentum, the path of least resistance is showing to the downside.
We’re looking to price out a call credit spread on the QQQ. If we can lock in that trade, we’ll look for an exit above $375 which is the weekly 21 exponential moving average (EMA). To the downside, we’ll look for a profit target near the recent low at $330.
Ideally we’re looking for a big bounce in the indexes early next week. Because of trend, structure, and momentum, our plan is to short the bounce.
Stay Focused!