This morning we received strong August CPI data that helps to secure the Sept. 18 fed pivot. While the data itself was bullish, the financial markets are not showing much of a reaction so far. SQQQ opened with a bearish gap lower, but has rebounded and is green so far today. I have $9.42 as a key resistance level and $8.70 as a support level to monitor over the next few days. There is volatility in the markets so I’m expecting to see some frequent swings up and down.
The markets are pricing in a 25 bps cut on Sept. 18. This is a positive sign because a 50 bps cut should be perceived as an emergency cut in response to economic concerns.
SQQQ completely erased all of today’s gains. There was a long wick back down after a strong rejection around $9.40. There’s a lot of volatility in the markets right now, the price is swinging back and forth every few hours. Not ideal conditions for making trading or investment decisions, and volatility is usually when bulls and bears get wrecked.
SQQQ Likely to Reach $8.10 – $8.20 Next
SQQQ got crushed today with a sharp decline below the white channel support line. I think SQQQ continues to break down lower, and I have $8.10 – $8.20 as my next key support level of interest. I might be interested in buying around this price level or lower.
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