Heavy Bearish Divs On QQQ, But...QQQ is sending clear warning signs in the form of strongly pronounced bearish divergences in the RSI, price-volume trend and other indicators. Of course, this does not necessarily mean that the market will now fall significantly. But if you look at other assets, you will see that the more pronounced the divergences, the greater the price movements.
What should we look out for now?
First of all, seasonality, which is very bullish here at the end of the year and usually in January too. We are looking at the daily chart here, so it may take some time for the divergences to ignite. Subsequently, a downward trend should establish itself in the subordinate time frames. The H1-H2 chart should be kept in view here. A pullback should then be awaited in order to find a favorable entry point.
What we can say for sure: The bull train is currently still in full swing. We know that many traders are observing the divergences, but one should not try to short the high due to the seasonality. When the bears return, there will be time enough for considered entries.
