QQQ seems to have run its course. The obvious fundamental of imminent tapering and subsequent likely yield increase may be the part to break the camels back here. The obvious penalty zone candidate would be the high price/sales multiple companies - which often times re tech names.
Technically, there' s a lot to be worried about, especially since the Jul 13 timeframe where the advance seems to be weakening -- We have a rising wedge over declining volume (though usually breaks occur before the wedge lines fully converge; we are pretty close there), coupled with a major bearish divergence with both the MACD and the RSI: new highs are being met with lower readings here.
Support seems pretty strong around 342, with weaker but higher support around 350. If this thesis is correct, I would expect to see this decline occur during the next few weeks - probably before the end of August.
Technically, there' s a lot to be worried about, especially since the Jul 13 timeframe where the advance seems to be weakening -- We have a rising wedge over declining volume (though usually breaks occur before the wedge lines fully converge; we are pretty close there), coupled with a major bearish divergence with both the MACD and the RSI: new highs are being met with lower readings here.
Support seems pretty strong around 342, with weaker but higher support around 350. If this thesis is correct, I would expect to see this decline occur during the next few weeks - probably before the end of August.
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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.