Hi everyone, here’s a rare midweek update because I found a good time to take a break from homework.
Let’s discuss QQQ.
We reached the somewhat expected 10% drop from the highs, although it was a bit faster than I thought. Since the index is having trouble bouncing at this support zone, I suspect we move another 5% down before we have any significant upward move. At best, I think we retest 225-230 before moving down again.
The chart below is the daily chart of QQQ. We are still intra-day, so this candle might be completely different in the next 2 hours. We are having lots of issues bouncing from here, so I think we make our way to the 200-205 zone before moving higher again. I think the best case scenario would be a short squeeze to gap fill the 225-230 gap before we move lower. I think it is highly unlikely we get a move to new highs within the next month, although I’m still bullish in the longer term (3-6 months+)