Will we experience a reversal or breakout of the QQQ and SPY?

QQQ – Can the Major Support Line Be Broken?

The QQQ is trading just around the major support level at 317. This is considered to be the “ultimate” boundary level to watch. The fear around the NASDAQ Composite is significant and the VXN ended just about the most recent highs. History has shown that extreme market reversals have occurred when the VXN is at these significant levels. What is the VXN? The CBOE Nasdaq Volatility Index also known as the (VXN) is a real-time market index representing the market’s expectations for volatility in the Nasdaq 100 index over a period of 30 days. The VXN was created as a counterpart to the VIX, which measures S&P 500 volatility since the tech-heavy Nasdaq often diverges from the broader market.

SPY – This isn’t feeling right

The SPY is trading around 417 as of writing. The 417 price level has been considered the lower part of the range. This level has been holding steadily since last year. The market has been testing this level many times with break out attempts happening on either side with strong reversals taking place when this support level has been breached. The question is whether this time will be different, or whether a major reversal is about to take place?

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