QQQ - Bearish breakout

Yesterday, QQQ broke below 338.04 USD, which acted as critical support before this occurrence; this is a particularly bearish development that forces us to change our view to bearish on QQQ. Although, we will still watch for possible invalidation, which would come in the form of retracement above 338.04 USD.

Technical analysis - daily time frame
RSI is bearish. The same applies to MACD and Stochastic. DM+ and DM- indicate bearish conditions in the market. ADX has moved relatively sideways since 8th April 2022. Because of that will observe whether selling pressure will last in the following days; additionally, we will watch if it will be able to rekindle the prior bearish trend. Overall, the daily time frame is bearish.

Illustration 1.01
In our last post, we introduced the setup visible above.

Technical analysis - weekly time frame
RSI, MACD, and Stochastic are all bearish. The same applies to DM+ and DM-. ADX shows that the bearish trend is neither gaining nor losing strength. Overall, the weekly time frame is bearish.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.