Nasdaq finds support on base line

A single line (the Ichimoku base line) on the QQQ monthly chart tells you a lot. It has held QQQ as support for over ten years. With the NDTH dipping to nearly 10 a few days ago, and with the SQQQ derivative markets reaching insanely overbought levels, all charts are confirming that a major bottom has just formed. If you're still short in QQQ or tech, you may want to start taking profit. There's little statistical probability that QQQ will drop much below this base line for the time being. Tech and growth stocks are largely inversely correlated to interest rates. With inflation expectations cooling and therefore the pressure to raise interest rates, tech and growth consequently will rebound. With this said there is a bear case to be made: the QQQ/SPY outperformance trendline is breaking down. Unless QQQ jumps rapidly, or SPY breaks down, before the close of the month, the steepest QQQ/SPY trendline will have been breached.

Not financial advice.

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