Hi everyone. During the last few weeks I mentioned that QQQ would likely drop to the 170-175 level before we move higher. During an after hours session earlier this week, QQQ actually did hit at or near the 175 level. Take a look at the weekly chart of QQQ below.
Notice how we are still coming off a weekly divergence (higher high for the index in terms of price, but a lower RSI for the most recent peak), so I still expect QQQ to move towards that 170-175 support level. Since we are still in an uptrend, buying instead of selling is what I prefer when I trade. Instead of selling or going short here, buying in the low 170s looking for a bounce back to the low 190s seems like a more logical move.