The Rock Trading: Is This Black Monday? SPY and QQQ Face Steep Challenges
AInvestMonday, Aug 5, 2024 5:20 pm ET
1min read
AAPL --
NBSM --
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Indexes bright red across the board today $SPY(SPY)SPDR S&P 500 ETF Trust down another 3% roughly and $QQQ more than 3%. Premarket started today much deeper red as we saw $SPY hit 508 support, the April lows shy of filling the 505 gap. $QQQ(QQQ)Invesco QQQ Trust hit 420 clearly under 200d but managed to close above that mark - helped by $NVDA buying at 90.69 and $AAPL(AAPL)'s 100DMA came to the rescue. It's way too soon to talk about bottoming out at this point, only because there will still likely be some headwinds out of Japan carry trade over the next few days, in addition, the white house has informed an attack on Israel by Iran will likely come Tuesday or Wednesday.

We discussed this morning a great indicator is a volume for a massive down day like this. In fact, $QQQ $SPY saw the largest volume single day today since 2023 June. But until $SPY can close above former breakout levels of 520/522 it might still be bumpy this week. $QQQ needs a close above 436 to get back into the support box we saw from Feb through May and obviously stay above the 200dma.

Well, was it Black Monday today? Not by historical standards and comparison - nonetheless still headwinds ahead of the markets.

To view today's exclusive video analysis, visit patreon.com/therocktrading


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