Happy Sunday, I hope all is well!
There’s no change to my bearish forecast for the next few weeks. Something interesting to note is that optimism is at an unusually low level, meaning we will likely bounce upwards. Either way, I think we move lower – Below is the weekly chart of QQQ.
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.
QQQ hits my short term pullback level of 187. Everything is lining up for a further drop in the next few weeks. Below is the weekly chart.
The next support level to watch out for is between 170 – 175 (10% lower). See you next week!
Hi everyone. Lots of earnings from the big tech companies are over. I still think we are near or at a local top because of the weekly RSI divergences. However, it does look like the uptrend is intact, so I do expect to see new highs after we pull back.
Notice how the weekly RSI is at about 65 at this new high when the previous weekly RSI high was at 70.
Generally following the first down week when at or near new highs, the index starts to drop. I think we move down to the 185-187 range quickly, and may experience some support there.
Hi everyone, despite stocks reaching new all-time highs, the weekly bearish divergences are still in place so I think we move lower in the coming weeks. Below is a weekly chart of QQQ – notice how the RSI is well below 70 (previous RSI high) while the index has made a new high.
Hi everyone, I hope you all had a great July 4th!
Below is the weekly chart of QQQ, and despite me thinking we would move lower last week from the open, we essentially stayed flat all week. I think we retest the 170-175 zone in the coming weeks.