QQQ cap 720 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 717.47, 0.4% below the cap. On the same map, the next level below was 710. See the original post.

Price traded through the cap during the session (first 5-minute close on the wrong side at 10:10 AM ET), with 5-minute closes ranging from 717.22 to 724.19. In the last hour price moved down 1.69, from 720.05 to 718.36.

The regular-session close was 718.36, 1.64 (0.23%) under the cap at 720. Under the rule (cap: close under is a hit), that is a hit.

We found no single clear company-specific catalyst for the day in our notes.