NAS/QQQ Weekend Look (Nov 22-26)
Here is the weekend look for Nov 22-26. Last week price move easily through the previoius week's high and closed right at the bottome of the upside target zone. The move was made on strength in AAPL, AMZN and MSFT as well as other large cap names. The breath of the market was interestingly weak. The divergence between small caps and large caps was extremely wide and the new high was made with just over 50% of NAS 100 stock trading above their respective 20 SMAs.
Going into this week price sits just above the higher time frame 1.618 inversion measurement(red arrow). This is significant level for me. More often then not price reacts to this level. Of course anything can happen and staying long in this market has paid off more often then not. With the shortened Thanksgiving week I would expect some sideways price action. Although I have been expecting a period of sideways down price movement for a while only to see the NAS make new highs day after day.
My focus will be on the mega caps again. If AAPL and AMZN continue their explosive moves look for higher highs.
Weekly notes
Wed... New home sales, Jobless claims & GDP
Thur... Thanksgiving
Fri... Shortened trading day (1pm est close)
Bullish Notes:
Infrastructure bill signed
BBB passed congress
Seasonally strong period for stocks
Political pressure favours low rates through mid term elections
Bearish notes:
Extended price action.
Weakening market breadth
Covid now back in the news cycle
Rising 10year yield.
Going into this week price sits just above the higher time frame 1.618 inversion measurement(red arrow). This is significant level for me. More often then not price reacts to this level. Of course anything can happen and staying long in this market has paid off more often then not. With the shortened Thanksgiving week I would expect some sideways price action. Although I have been expecting a period of sideways down price movement for a while only to see the NAS make new highs day after day.
My focus will be on the mega caps again. If AAPL and AMZN continue their explosive moves look for higher highs.
Weekly notes
Wed... New home sales, Jobless claims & GDP
Thur... Thanksgiving
Fri... Shortened trading day (1pm est close)
Bullish Notes:
Infrastructure bill signed
BBB passed congress
Seasonally strong period for stocks
Political pressure favours low rates through mid term elections
Bearish notes:
Extended price action.
Weakening market breadth
Covid now back in the news cycle
Rising 10year yield.
Comment:
Came close to the upper target zone and rejected sharply. Now back below the important 1.618 fib extension(red arrow). If price cannot reclaim the 1.618 looking at a potential drop back to 16207.
Comment:
Close to the first level of support.
Comment:
Found support at the level identified in the last update bouncing into the close on Wed. Showing weakness again after some new covid warnings coming out of Africa on the Thanksgiving holiday. The NAS currently holding up better than the other indexes probably due to the fact that more covid = lower rates for longer. Possible volatile day tomorrow due to low volume. On weakness look for retest of recent low and then the neutral.
