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 18:52 ET, QQQ traded at 746.04, 1.8% below the cap. On the same map, 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 16.06 away (743.94); the session range was 740.13 to 743.94. In the last hour price moved up 1.26, from 742.31 to 743.57.

The regular-session close was 743.57, 16.43 (2.16%) 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 0.0%. We found no single clear company-specific catalyst for the day in our notes.