(Click On Charts To Enlarge)
The NASDAQ had a weak session on Monday and the intraday 29.62-29.58 Double Bottom in the QLD got taken down immediately after the open yesterday morning.
During the session, however, H&S patterns formed in the indices, creating short-term trading opportunities. The QLD broke out at 1:53PM, putting a target of 29.41 IN PLAY. That target was below the 29.62-29.58 Double Bottom broken support (anticipated resistance) so the QID had no problem rallying and the target MADE rather quickly.
The QLD then went higher, attacking the resistance above the 29.62-29.58 breakdown. It got to 30.24, then slid into the close of 29.36, back below 29.62-29.58 resistance. That often occurs on the first attempt to get through nearby resistance because recent buyers above the breakdown got trapped and would like to get out at a break even, or near break even.
The SDS chart is an example of the H&S Tops that simultaneously formed in the short and ultrashort funds.
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