QQQ broke through the key top resistance set by the channel and moving averages are indicating price acceleration and momentum. I suspect that there will be a near term drawback as too much is flooding into tech and back into small cap. Likely this will be the result of another exogenous shock that is ultimately predictable, like , fiscal policy, uncertainty around the political environment, or COVID related issues, like the new Delta variant spreading through the news. Though this last point is not affecting the market in any way.
According to CNBC (June 29, 2021):
"The early strength for cyclical and value stocks on Tuesday pushed back against some of the recent rebound in growth and tech stocks. Andrew Smith, chief investment strategist at Delos Capital Advisors in Dallas, said he expects those groups to continue to jockey back and forth in the months ahead."
“It’s not really going to be one of those easy rotations that we’ve had in the past, where all the gains come out of value or the asset flows are going to go out of value and into growth. I think it’s going to be a choppy market back and forth ,” Smith said, adding that he recommends investors add defensive stocks and not just shift fully back to growth."
"The Conference Board’s consumer confidence reading for June came in higher than expected, adding to the readings about the economic recovery."
I'm going to reallocate from QQQ to small cap at some point. Once QQQ tops out at some point in the next couple of weeks, I will likely sell around the end of this current quarter and use that cash for small cap in the next dip.