SPX & QQQ - The expected short squeeze occurred
The expected short squeeze occurred, with the 5-day moving average finally surpassed. The Stochastic oscillator is attempting a bounce from oversold levels, and the pathway outlined to last Wednesday is unfolding as anticipated. The muted price action during the afternoon aligns with that expectation.
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QQQ has reclaimed the 5-day moving average with a strong candle, however, on low daily volume. A short-term bullish continuation, likely followed by another decline to create a bullish RSI divergence, is likely. The RSI's current oversold level mirrors January 2022, which preceded further lower lows.
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