QQQ made a new 8-year high at 119.66 (October 2016), just shy of the year 2000 all-time high of 120.50 (March 2000), before ranging. The indicators are still in the positive territory, suggesting scope for further upside. Nonetheless, the 15-month (connecting the August 2015 spike low/February/June 2016 lows and December 2015/October 2016 highs) could contain the price action near term. While the 110.31 area (20 month moving average/rising lower bounds) supports the consolidation, an upside move through 119.66 would open the 120.50 key resistance for a retest. A decisive breakout there is needed to confirm resumption of momentum. Investors who would like to buy the index should do so on the decisive breakout.
However, investors who would like to reduce holdings should do so on weakness below the 110.00 area. A breakdown below the 110.00 level indicates bears are in control in an attempt to push back towards the long-term support levels including 101.75 (June 2016 low) and 94.84 (February 2016 low).