This ETF SPY follows up on the May 23, ETF SPY, which focused on the Nasdaq-100.

The May 23, ETF SPY was special, because it essentially provided a sneak peek of the kind of analysis provided by the Profit Radar Report.

To quickly review, the May 23, ETF SPY noted the May 22 reversal day (see chart above) and strongly suggested that lower prices are ahead along with this low-risk entry:

“Prices often retest a previously broken support level, so a move up to the red trend line (@ 3,033) would be a low-risk opportunity to go short.”

That retest of the trend line occurred on May 28 and once more on May 30. In fact, I tweeted the following message and chart real time on May 30 at 11:18 am PST:

“Hourly resistance line is at 3,023 for Nasdaq-100 - 74.22 for QQQ. This is a low-risk short entry with tight stop-loss.” >> follow iSPYETF on Twitter.

How low should the Nasdaq go? The June 2, Profit Radar Report stated that: “Important support and initial down side target is 2,905.”

Although the Nasdaq missed its down side target by a few points yesterday, it briefly dipped below the trend channel, but staged a reversal and finished with a green candle low and a close above support.

As you can tell by the first chart, I wrote this article on Thursday afternoon. At the time I didn't know we'd see such a strong up day today, but yesterday's article on the deeply oversold NYSE advance/decline ratio highlighted the "potential for a rally that lasts more than a couple of days."

Yesterday's Profit Radar Report stated the following: "The Nasdaq-100 dipped below channel support and ended the day with a green reversal candle, a close above support and a small bullish RSI divergence. Today's decline may have exhausted short-term selling pressure."

It’s too early to tell how far this rally will run. We'll use our comprehesive analysis radar to spot the next low-risk entry point - long or short.

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