QQQ cap 750 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 09:05 ET, QQQ traded at 739.09, 1.5% below the cap. On the same map, the next level below was 730. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 9.82 away (740.18); the session range was 726.86 to 740.18. In the last hour price moved up 2.09, from 726.86 to 728.95.

The regular-session close was 728.95, 21.05 (2.81%) under the cap at 750. Under the rule (cap: close under is a hit), that is a hit.

QQQ finished the day down 2.0%, while SPY was down 1.1%. On the economic calendar that day: CPI (8:30 AM), Fed Beige Book (2:00 PM).