Invesco QQQ Trust, Series 1Updated QQQ Short Idea off of 400s this week
QQQ has been trading along these levels listed on the chart. After the face rip short week of Christmas to the end of the 2021 Calendar year, I think that there may be some profit taking on the Q's.
Some traders dislike MACD, but as we can see from the histogram the trend is starting to weaken. There is not much support underneath the current levels of QQQ. 392/388 may be tested if we drop.
The bullish case - a drop to 395 and then a strong move back up to all time highs. Volume needs to step in hard and acceptance of trend above 400. I think that traders are wary of COVID-19 and continued inflation concerns.
I am leaning bearish around 65% or so. I would not go anything closer than 4 weeks out on either bull/bear side for options.
If you compare the recent leg up and the following consolidation on QQQ to SPY I think you'll see that equities are poised for a reversal if bulls do not continue this impulsive leg up. If bulls do step in, and step in with conviction, we can easily see new ATHs pushed.
Some traders dislike MACD, but as we can see from the histogram the trend is starting to weaken. There is not much support underneath the current levels of QQQ. 392/388 may be tested if we drop.
The bullish case - a drop to 395 and then a strong move back up to all time highs. Volume needs to step in hard and acceptance of trend above 400. I think that traders are wary of COVID-19 and continued inflation concerns.
I am leaning bearish around 65% or so. I would not go anything closer than 4 weeks out on either bull/bear side for options.
If you compare the recent leg up and the following consolidation on QQQ to SPY I think you'll see that equities are poised for a reversal if bulls do not continue this impulsive leg up. If bulls do step in, and step in with conviction, we can easily see new ATHs pushed.
Note
404 is an important level for the bulls and bears. Need to see strong volume step in and continuation of the move up towards ATHs. If volume does not step in there, we may see another rejection down towards 397 and below depending. Semi conductor announcements are coming out tomorrow (NVDA/AMD) so some good guidance or product line news can help stimulate the index
Note
QQQ has sold down into the 397/388 range, a close below is good case for the bears. Can see the bulls buying the dip at 394
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.