2/24/2020 Stocks drop and look to continue downward slide next week. This could be the start of a pullback (~10%) before we continue higher.

Hi everyone.  I hope you are all doing well.

The stock market closed quite a bit lower this week, and futures indicate a significantly lower open on Monday. This might finally be the 10% pullback where buyers can aggressively buy again.

The weekly chart of QQQ is below. If we get a “normal” pullback, we would drop to the mid 210s. I’ve drawn a rectangle for that price zone. If we move further down, I expect buyers to aggressively step in in the high 190s or low 200s (lower rectangle). The first move represents about 10% decline from the recent high, while the next level represents a 15-20% decline from the previous high.

QQQ weekly 2_24_2020

 

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