QQQ cap 760 hit

Cap: close under is a hit. Close on the level is a push. Graded on the regular-session close.

A cap is a price above the market where a large amount of options positioning sits. The idea is that this positioning can slow a move up there, so the test is simple: does the stock close under it? When it was posted at 08:41 ET, QQQ traded at 753.95, 0.8% below the cap. On the same map, the next level above was 762 and the next level below was 750. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 2.21 away (757.79); the session range was 751.27 to 757.79. In the last hour price moved down 5.36, from 756.63 to 751.27.

The regular-session close was 757.71, 2.29 (0.30%) under the cap at 760. Under the rule (cap: close under is a hit), that is a hit.

QQQ finished the day down 0.3%, while SPY was down 0.2%. We found no single clear company-specific catalyst for the day in our notes.