Happy President’s day! Hopefully you get the day off. I certainly don’t have school 🙂
Below is the weekly chart of QQQ. We got yet another healthy move up this week. Buying here wouldn’t be horrible, but probably not great either. I think because we have such strong momentum, any sort of pullback will be bought aggressively. I could see a pullback down to 220-225 range, but then the upward trend will likely resume.
Hi everyone. I didn’t get to blog yesterday and I suspect that posts will have to be on Monday now since the weekends are very packed for me this semester. Sorry again that I missed the post yesterday.
Let’s look at the daily chart of QQQ below. Last week I spoke about the range from roughly 217 to 227, and I suspected that if we broke above that range, we would continue much higher, and vice versa if we broke below the 217 level. We broke above that range last week, and went up quite a lot today as well (Monday). There aren’t any signs that this upward move will end anytime soon.
Hi everyone. Sorry for the late blog post, and I hope you enjoyed the superbowl if you watched it!
Below is the daily chart of QQQ. The upward momentum has come to a halt and I suspect we will stay at around these levels for a few weeks. I think selling near 225 is a good idea, but if we stay at or near 225 for a while, I suspect we will break higher again.
Hi everyone. It looks like we might finally have the long awaited pullback. Although QQQ barely closed lower this week, the Dow Jones and S&P500 closed quite a bit lower on the week. Notice how the RSI reading on the weekly chart is around 80, which is tied for the highest it has been in the last 5 years.
Hi everyone, I hope all is well.
Indexes made another strong move upwards this week. We discussed that a measured move up for QQQ would result in a move to roughly 225 last week, and we are almost there now. Notice that the weekly RSI is now above 80, which suggests that this move is extremely strong (high momentum).
Here’s the weekly chart of QQQ. I measured the length of the previous leg and added it to the recent low price in the chart below. The leg extends to 225 ish so maybe the index will hit resistance there. This is called a measured move up.
Below is the weekly chart of QQQ. I still think the index will retest the 190-195 zone before moving higher. The reason why I think we will move higher after dropping is that once indexes drop after explosive moves up, they generally continue to move higher after the pull back instead of beginning a new trend.