Hi everyone, and welcome back to the blog. Despite being down a significant amount most of the day, QQQ closed up and continued to move up in after hours trading. You can find the daily chart of QQQ below.
We got the reasonably strong reaction off the 200-205 support level we discussed a few days ago, which is a reasonable sign for the bulls. Something interesting is that this move down is extremely quick, with no “dead cat bounces” in between, suggesting that this move may take longer to correct from than previous downward moves. Let’s look at longer term charts below this chart.
Below is the weekly chart of QQQ. I think we work our way down to the 180-190 zone in the next 2-3 months, but I think we recover some losses starting next week. I would be very surprised if we will get anywhere near 220 in the next few weeks (and if we do, I’m bullish in the short term again).
Either way, now is a decent opportunity to add some long positions if you are looking for a very short term rebound. Otherwise, for longer term investors, waiting until prices drop to the 180-190 zone makes more sense.