QQQ cap 754 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 19:08 ET, QQQ traded at 747.57, 0.9% below the cap. On the same map, the next level above was 760 and the next level below was 740. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 1.97 away (752.03); the session range was 748.78 to 752.03. In the last hour price moved up 0.15, from 751.12 to 751.27.

The regular-session close was 751.24, 2.76 (0.37%) under the cap at 754. Under the rule (cap: close under is a hit), that is a hit.

QQQ finished the day up 0.5%, while SPY was up 0.6%. We found no single clear company-specific catalyst for the day in our notes.