QQQ cap 755 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 08:20 ET, QQQ traded at 750.2, 0.6% below the cap. On the same map, the next level above was 760 and the next level below was 742. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 5.57 away (749.43); the session range was 744.96 to 749.43. In the last hour price moved up 0.81, from 745.21 to 746.02.

The regular-session close was 746.04, 8.96 (1.19%) under the cap at 755. Under the rule (cap: close under is a hit), that is a hit.

QQQ finished the day down 0.7%, while SPY was down 0.1%. We found no single clear company-specific catalyst for the day in our notes.