QQQ: Bears Are Angry
Updated
Nothing looks bullish and everything looks bearish on the QQQ.
Lower high, lower low, broken down parallel channel, under the 21W and 20W MA, RSI rolling over after visiting the red Bollinger band, and price entering low volume zone since the drop in 2022.
Based on the volume since 2022, 318-325 seems like the most likely long-term support for QQQ. It corresponds to the 0.5 fib level and where the most volume is. We also saw strong support at this level back in spring 2022.
Please keep in mind that nothing goes down/up in a straight line. I expect us to revisit the MAs and test them as resistance.
Lower high, lower low, broken down parallel channel, under the 21W and 20W MA, RSI rolling over after visiting the red Bollinger band, and price entering low volume zone since the drop in 2022.
Based on the volume since 2022, 318-325 seems like the most likely long-term support for QQQ. It corresponds to the 0.5 fib level and where the most volume is. We also saw strong support at this level back in spring 2022.
Please keep in mind that nothing goes down/up in a straight line. I expect us to revisit the MAs and test them as resistance.
Note
Bear flag forming in the past couple of weeks. Using a measured move down takes us to the same 318-325 area. It seems like we are going for the gap fill from Sep 21 then will break down.
Note
So far so good. I think this week will revisit the MAs, around 356 or so then continue down next week.
Note
Revisiting this post. It was just a big bull flag. Price action broke up instead of down. In hindsight, the low volume zone acted as support (markets don't like going to low volume areas, as they are unknown territory).
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