QQQ cap 730 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 727.65, 0.3% below the cap. On the same map, the next level below was 720. See the original post.

Price never closed a 5-minute bar on the wrong side of the cap. Its closest approach was 5.77 away (724.23); the session range was 708.14 to 724.23. In the last hour price moved up 1.32, from 708.48 to 709.80.

The regular-session close was 709.80, 20.20 (2.77%) under the cap at 730. Under the rule (cap: close under is a hit), that is a hit.

QQQ finished the day down 2.5%, while SPY was down 1.1%. We found no single clear company-specific catalyst for the day in our notes.