AI Bubble grows above resistance for QQQ
Updated
The gap up and follow through today shows a clear break above the 2010 trading channel that has provide resistance so far. I see a pattern very close to that of July 6, 2020. The is not confirmation yet that price is out of the channel and that resistance has become support, but for the bulls this is a very good start. I would expect the bulls to try and run with it now that price is above the channel. I will also be watching for a pullback to test for support in the near future. If that can hold, the AI bubble may get really pumped. We can never know what will spook the market, but right now it feels like the sky is the limit.
Today
July 6, 2020
Today
July 6, 2020
Note
Pushing even higher than expected, but looking at the RSI you can see that this rally is probably on its last leg. Does not mean we can keeping push higher, but some form of pullback is due next week or so.Note
Pullback any time nowNote
My bet is still a pull back.Note
End of day FridayNote
I just see a small rally today, maybe tomorrow. I think we will see more down in the near term.Note
Looks like a small counter-trend rally to me, test of resistance of the orange line. I am guessing that there is another leg down to test support.Note
End of the day Friday and we tested both the high and the orange trend line only to be pulled back. I would not be surprised if next we see QQQ go higher still. One thing that I have noticed is that the bulls like to take advantage of a holiday's when most traders and hedge funds are not trading, which means the volume is super low. That is pretty much how QQQ got this high, low volume with little participation since no smart person buys in at these highly overbought levels.Note
Still hanging around the orange trend lineNote
Well, so much for any kind of real pull back before going higher. I expected some drifting higher, but the last two days we strong up days. Now, the volume is still super low, so we will have to see what happens next week if traders come back.Note
End of week and QQQ just keeps climbing. Bubblicious!
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