[stocks] Market Minutes – Looking for $QQQ Short Entry on the Bounce

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Below is a past issue of Morpheus Market Minutes, your free daily market analysis and top picks for swing trading stocks and crypto.

May 17, 2022

Day 3 of a new rally attempt in the stock market produced an inside day on lighter volume, right at resistance of the 8-day ema in the Nasdaq 100 ETF ($QQQ):  

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If $QQQ moves above the two-day high, it could lead to a test of next resistance at the declining 20-day EMA.  

On the chart above, notice how the 20-day EMA has perfectly acted as resistance on previous bounces within the current downtrend.

Although stocks are in short-term bounce mode, the Nasdaq 100 remains firmly in a downtrend UNLESS the index convincingly reclaims support of its 20-day EMA on higher volume.

Regardless, we trade what we see–not what we think!

As such, we are now stalking $SQQQ (Nasdaq 100 short ETF) for a low-risk entry point on a bounce into strength.

We will send Wagner Daily members an alert with our exact entry and stop prices if we see an ideal entry point today.

Start your Wagner Daily membership to receive trade alerts with our exact entry and stop prices, portfolio access, and complete market analysis. The Wagner Daily PRO also provides you with access to your live Swing Trader Chat. If you enjoy this free service, please share with a friend.

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