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We Just Got the “All Clear” Signal on the QQQ

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Trade of the Day Wake-Up Watchlist

"When markets can absorb bad news and bounce back the same day, you're looking at underlying strength that wants to push higher."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

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Yesterday's CPI number gave us the gap down I was expecting - markets dropped about 1.5% when the 2.7% number hit at 8:30 a.m.

I backed off some positions heading into the announcement because I thought it could be a hidden landmine.

Turns out the market just did what it always does - overreacted to the headline, then figured out it wasn't actually that bad.

We're through it now. No big deal. And it sets us up perfectly for what I've been seeing on the technical side.

What the CPI Really Told Us

While everyone was reacting to the headline number, the details were actually pretty encouraging. Inflation's clearly easing - even the economists are saying it's peaked.

The tariff impacts everyone was everyone worried about? Oxford Economics – a leading research and consultancy firm - says they're mostly already baked in.

This removes the biggest uncertainty that was hanging over growth stocks. When rate fears fade, tech runs. And yesterday's data basically said, "Inflation's under control. Carry on."

And so we will...

 

What I'm Seeing on QQQ

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The QQQ looks great structurally. I think we're going to see new highs here. We're sitting just a few handles off the all-time high at 637.01 with clean price action and no major resistance overhead.

No major squeeze patterns yet (that's when price gets compressed between tightening Bollinger Bands - shows coiling energy building up), but we are starting to see one on the shorter 30-minute time frame.

A Perfect Gap

Think about what just happened - we stress-tested this market with exactly the kind of news that could derail a bull run.

Hot inflation data... tariff concerns... and rate cut uncertainty.

The market sold off initially, then immediately started recovering as smart money realized the fears were overblown.

When markets can absorb bad news and bounce back the same day, you're looking at underlying strength that wants to push higher.

Your Action Plan

I think the QQQ will push through to fresh all-time highs.

We cleared the CPI hurdle. The structure looks good. I don't see any big red flags right now.

At some point we will get a pullback, but right now, nothing's screaming caution.

We're just cruising higher.

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