This is a WEEKLY chart.
What is going on with the QQQ?
We saw recent highs in late August. Then we saw a drop back close to the 21 week Exponential Moving Average (ema).
Now we have had a week, although higher than last week, that has the look of something interesting. Is there a double top taking place?
Notice that my double top line is at the top of the two weekly bodies from late august. Notice also that this weeks candle shows QQQ started the week below the line, rallied above the line during the week, but then closed the week below the double top line. It is also interesting that the weekly candle closed lower than it opened (Green to Red Reversal).
Bullish traders are going to point out that this weeks candle has higher highs and higher lows (HH/HL) compared to last week. And they would be correct. Could next week be another HH/HL week? Sure.
Just look at the Sept 28 weekly candle. It looks almost identical to this weeks candle. And the following week, the week of Oct. 5, was a strong up week. Nothing is for sure when you invest...
The major difference for me is that this weeks candle flirted with my double top line. It wasn't strong enough to close above the line this week but lets see what happens next week.
One more bullish argument might be that QQQ is still above the 8 day ema. Any symbol above the 8ema is in bullish mode. Until it isn't...
I am not bullish or bearish as a rule. I try to be bullish when the chart tells me I should be and bearish when the chart tells me I should be that. Right now the QQQ chart looks both bullish and bearish to me. But this weeks candle is more bearish to me than bullish. Notice the long topping tail on this weeks candle. Notice this weeks range high is lower than the Sept 31 weeks range high. You can use these two highs, as I did, to draw a down trend line. If QQQ gets above that down trend line, you and I should be long. If the QQQ is coming back to the 8 week ema, it will lose 10 points. If the QQQ is coming back to the 21 week ema it will lose 25 points. Interesting.
Let me say one more thing that is not bullish or bearish. In fact, this piece of information is telling you to be cautious because there could be some ups & downs in the near future.
***I am switching to a Monthly Chart. Please follow along on your own Monthly Chart.***
September was an outside month. All this means is that September's high was higher than August's high and September's low was lower than August's low. These types of candles are kind of a big deal to me. So I pay attention.
October's candle is inside the range of September's candle. As long as the current price of the QQQ is inside September's range, it essentially means investors are not willing to pay more than $303.50 for the QQQ and they are not willing to allow QQQ to get below $260.11. That is a 43ish point range that the QQQ's can trade in without any real direction. We call this sideways chop.
The price of QQQ is really just going sideways but it can chop you up and take your money. Be careful out there.
What is going on with the QQQ?
We saw recent highs in late August. Then we saw a drop back close to the 21 week Exponential Moving Average (ema).
Now we have had a week, although higher than last week, that has the look of something interesting. Is there a double top taking place?
Notice that my double top line is at the top of the two weekly bodies from late august. Notice also that this weeks candle shows QQQ started the week below the line, rallied above the line during the week, but then closed the week below the double top line. It is also interesting that the weekly candle closed lower than it opened (Green to Red Reversal).
Bullish traders are going to point out that this weeks candle has higher highs and higher lows (HH/HL) compared to last week. And they would be correct. Could next week be another HH/HL week? Sure.
Just look at the Sept 28 weekly candle. It looks almost identical to this weeks candle. And the following week, the week of Oct. 5, was a strong up week. Nothing is for sure when you invest...
The major difference for me is that this weeks candle flirted with my double top line. It wasn't strong enough to close above the line this week but lets see what happens next week.
One more bullish argument might be that QQQ is still above the 8 day ema. Any symbol above the 8ema is in bullish mode. Until it isn't...
I am not bullish or bearish as a rule. I try to be bullish when the chart tells me I should be and bearish when the chart tells me I should be that. Right now the QQQ chart looks both bullish and bearish to me. But this weeks candle is more bearish to me than bullish. Notice the long topping tail on this weeks candle. Notice this weeks range high is lower than the Sept 31 weeks range high. You can use these two highs, as I did, to draw a down trend line. If QQQ gets above that down trend line, you and I should be long. If the QQQ is coming back to the 8 week ema, it will lose 10 points. If the QQQ is coming back to the 21 week ema it will lose 25 points. Interesting.
Let me say one more thing that is not bullish or bearish. In fact, this piece of information is telling you to be cautious because there could be some ups & downs in the near future.
***I am switching to a Monthly Chart. Please follow along on your own Monthly Chart.***
September was an outside month. All this means is that September's high was higher than August's high and September's low was lower than August's low. These types of candles are kind of a big deal to me. So I pay attention.
October's candle is inside the range of September's candle. As long as the current price of the QQQ is inside September's range, it essentially means investors are not willing to pay more than $303.50 for the QQQ and they are not willing to allow QQQ to get below $260.11. That is a 43ish point range that the QQQ's can trade in without any real direction. We call this sideways chop.
The price of QQQ is really just going sideways but it can chop you up and take your money. Be careful out there.