$QQQ (Nasdaq 100) – Similar Range Breakout From July 2022 May Be
The tech-heavy $QQQ surged 8.84% last week, compared with the S&P 500's 5.9% in its sharpest weekly rally of the year. This welcome inflation news, combined with a huge drop in the dollar and market rates, launched an epic rally. The $QQQ for its part soared 7.4% on Thursday alone, reclaiming its 10,20 & 50-day moving averages within the single session. Many of the beaten-up growth stocks made double-digit percentage moves, including Amazon. ($AMZN), but just about every stock came along for the CPI ride.
$QQQ have currently broke out of a consolidated 6 weeks range in similar fashion to to July 2022 period. During the time, $QQQ staged a continuous rally along its rising 10/20-day moving averages towards its medium term downtrend line.
The support level to watch for $QQQ this week is revised up to 270, undercutting its current 10/20-day moving averages.
Bull Case: Reclaim above 310 declining 20-day moving average.
Bear Case: Breakdown of 270 level, undercutting its current 10/20-day moving averages.. The next support level is at 260.
$QQQ have currently broke out of a consolidated 6 weeks range in similar fashion to to July 2022 period. During the time, $QQQ staged a continuous rally along its rising 10/20-day moving averages towards its medium term downtrend line.
The support level to watch for $QQQ this week is revised up to 270, undercutting its current 10/20-day moving averages.
Bull Case: Reclaim above 310 declining 20-day moving average.
Bear Case: Breakdown of 270 level, undercutting its current 10/20-day moving averages.. The next support level is at 260.