QQQ - Follow-up after the FED decisionBefore the FED rate hike, we set price targets of 270$ and 260$, with 270$ (and 11 000$ for NQ1!) taken out within a matter of hours and the price drop stopping 0.11$ above the 260$ price tag (before the price erased some of the losses). During the current week, we will pay close attention to the CPI print on Thursday. We expect no significant decline in the figure and, therefore, no room for the FED's pivot.
We believe the bear market is halfway through but far from over. Indeed, the earning season continues to support our thesis about the market progressing into the second stage of the downtrend. Despite that, we are growing anxious and expect a defiant rally down the road, one which will once again make people believe that the bottom is in (only to prove them wrong later).
Unfortunately, though, we do not know when this time will come, and thus we stay very cautious. At the moment, we would like to abstain from setting any price targets. Instead, we would like to wait for the CPI print and update our thoughts afterward. Our price target for NQ1! stays at 10 000$.
Technical analysis - daily time frame
MACD, Stochastic, and RSI are bearish. DM+ and DM- are bearish. Overall, the daily time frame is bearish.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
