QQQ Plays out again
QQQ plays out before an entry. QQQ popped just above our target at open with a quick down turn and whipsaw up and down before continuing its move down. Intel (
INTC) posted earnings yesterday after close of market with a better than expected outcome likely serving as a catalyst for the early move up to All Time Highs (ATHs).
With the downturn of the MACD, so went the price action. The EMAs and MACD synched heading south pushing the price south likely due to the gap up to all time highs and opportunist already in a position taking immediate gains from the thrust up.
At market closing, the EMA and MACD are still both in a downward position and below previous shown support level.
Generally the expectation to open next week is leaning to the down side given the above technicals. Near term support is roughly $221.50.
Caution:
Some of the largest companies are posting earnings next week. After Monday, anything is possible.
FB, Apple, Google, Amazon, and Microsoft all release 4th Quarter earnings next week. Provided earnings are positive (which is expected), the price trajectory of QQQ could change. Alternatively, positive earnings results could yield little response to a market that is already hit ATHs. Despite earnings, institutional investors may be hesitant to invest giving the risk.
Risk:
The weekly RSI for QQQ has been overbought for weeks now (since Early Dec). And while RSI can remain in overbought territory for extended periods, it still serves as a cautionary tale for new money long term.
INTC) posted earnings yesterday after close of market with a better than expected outcome likely serving as a catalyst for the early move up to All Time Highs (ATHs). With the downturn of the MACD, so went the price action. The EMAs and MACD synched heading south pushing the price south likely due to the gap up to all time highs and opportunist already in a position taking immediate gains from the thrust up.
At market closing, the EMA and MACD are still both in a downward position and below previous shown support level.
Generally the expectation to open next week is leaning to the down side given the above technicals. Near term support is roughly $221.50.
Caution:
Some of the largest companies are posting earnings next week. After Monday, anything is possible.
FB, Apple, Google, Amazon, and Microsoft all release 4th Quarter earnings next week. Provided earnings are positive (which is expected), the price trajectory of QQQ could change. Alternatively, positive earnings results could yield little response to a market that is already hit ATHs. Despite earnings, institutional investors may be hesitant to invest giving the risk.
Risk:
The weekly RSI for QQQ has been overbought for weeks now (since Early Dec). And while RSI can remain in overbought territory for extended periods, it still serves as a cautionary tale for new money long term.
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