QQQ / NDX - more upside in near term
QQQ broke above a minor neckline @ 284.50 last Friday and looks set to head higher in the coming days towards the 200 day moving average cum trendline resistence around 308-313.
The odds of QQQ (NDX) reaching this level has increased as it is now taking the lead among the 3 indices (namely DJI, SPX and NDX). This means traders are now in "Risk-On" mode and piling into the more "speculative" sectors (namely Techs).
However, the bigger picture is still in a downtrend and we do not know if the bottom is already in (until on hindsight!). Market could also go into weeks/months of sideways consolidation (just to please the FED lol).
In general, mass layoffs by big companies could be a hint that the worst is over (esp for the stock concerned). However, we are also in a tricky situation that an aggressive market recovery might not bode well for inflation.
Hence, anything is still possible at this point, waiting for clearer TA signs especially from the big Techs (FAANG). Meanwhile a lot of smaller stocks have already turned the corner. Hence, I'll be flexible.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
The odds of QQQ (NDX) reaching this level has increased as it is now taking the lead among the 3 indices (namely DJI, SPX and NDX). This means traders are now in "Risk-On" mode and piling into the more "speculative" sectors (namely Techs).
However, the bigger picture is still in a downtrend and we do not know if the bottom is already in (until on hindsight!). Market could also go into weeks/months of sideways consolidation (just to please the FED lol).
In general, mass layoffs by big companies could be a hint that the worst is over (esp for the stock concerned). However, we are also in a tricky situation that an aggressive market recovery might not bode well for inflation.
Hence, anything is still possible at this point, waiting for clearer TA signs especially from the big Techs (FAANG). Meanwhile a lot of smaller stocks have already turned the corner. Hence, I'll be flexible.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
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.