After a very strong signal for a rally in QQQ as of the close of last Monday, the p-Indicator now signals a reversal to the downside for both SPY and QQQ. Calculations as of the close of yesterday indicate a short term reversal to the downside, as shown below:
P-delta values for all target/stop pairs used (1%/1%, 2%/2%, 5%/5% and 7%/7%) for SPY are negative with high significance S and for QQQ all are negative except for 7%/7%. P-delta is the difference between the probability of win for longs minus the probability of win for shorts, per given target/stop pair. I view this number as a directional bias. P-delta values above 10 with significance S higher than 4 are usually strong signals.
Have a good trading day!
Disclosure: no relevant positions.
Disclaimer: The author is not a financial advisor and does not recommend the purchase of any security or advise on the suitability of any trade or investment in any timeframe. ETF, stock, futures, forex and options trading and investing involves substantial financial risks and can result in total loss of capital. If investment or other professional advice is required, a licensed professional should be consulted.
