There was little doubt that the latest edition of a two day rally would at least stall here just below the important 417.5 level. The rally was quite similar to the May 6 – 7 rally in response to the little dip to 411. The support at 404 is literally resting on air.
With all these negatives, things aren’t very alarming. The action today hardly induces panic. A continuation down here has a target of 422 – 404 = 18, 417-18 = 399.
QQQ made a double top at 342, and has already completed two selling waves. 343 – 326 = 17; 336 – 316 = 20. That could complete its decline, because it has already closed most of the gaps from the late March – April advance. However it is south of the important 54 day SMA and probably the extra length of the latest down wave argues against an imminent recovery.