QQQ had a big bearish candle on Friday. If you look left on the chart there were 2 comparable recent days. On Dec 18, 2024, and Jan 7, 2025, both lead to further downside. On Dec 18, the decline before a rally was about 5.3% and the Jan 7 decline was around 4.9%. Friday’s decline was about 2.4%. “If” those declines are any guide, we could expect another 2.5% to 3% additional deterioration. Which portends a pullback to around 512 to 510. Think of those as areas of concern, not a prediction. I have also drawn in horizontal lines that “may” become areas of support or resistance. In addition, we are touching an area of upward sloping line (area) that has defined a series of higher lows over the last 4 weeks.
In summary, it is a good idea to have an open mind about any outcome over the next few days to weeks and simply look at these areas to see if they do indeed end up being turning points.
One more point, this is an index fund and as such looks at heavily weighted stocks. We are likely in a period of picking individual stocks that are leading and using this index simply as a guide to overall market health.
I hope that helps.
In summary, it is a good idea to have an open mind about any outcome over the next few days to weeks and simply look at these areas to see if they do indeed end up being turning points.
One more point, this is an index fund and as such looks at heavily weighted stocks. We are likely in a period of picking individual stocks that are leading and using this index simply as a guide to overall market health.
I hope that helps.
Note
QQQ Just in case we get a 10% pullback (considered a normal correction or pullback in an uptrend) we are looking like this:Note
That is around 486...
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Ideas I publish are my own. They are not meant to be investment / trading advice. You are encouraged to do your own due diligence.
I may or may not take any trade published and I am under no obligation to post any action or update to any idea.
I may or may not take any trade published and I am under no obligation to post any action or update to any idea.
Disclaimer
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.