QQQ retests trendline
As seen in both the RSI and price chart, the Nasdaq is retesting the resistance line it just crossed (last week’s support line. If it crosses back above it, the bulls still have control. I think this is possible because it the RSI is bouncing off of its second support line. If QQQ fails to cross the line, however, and instead hits the roof and falls, it will cement the top resistance line (last week’s support line) as a solid trend line. As such, expect it to fall and test the next horizontal support line. If this is the case, it will enter a very broad megaphone pattern, marked with equal lows and higher highs. This will come with high volatility in the QQQ. As of right now I’m neutral, but watch the the key price level of 280. A cross above it is bullish, a failed breakout is semi- bearish. Also worth mentioning, the QQQ is rallying on lower volume today, compared to the last few days, meaning a large rise in selling volume could easily erase the rally.
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