scheplick

A Tech Correction? Mapping Out Levels To Watch

NASDAQ:QQQ   INVESCO QQQ TRUST
Tech stocks have been on a massive run for about a year now. They have bounced with speed off the March lows from last year's crash. It has been nothing short of remarkable. The shift from online and COVID-19 was sweeping and overnight. To some degree, it was probably great we did not that now rather than later. An overnight technology shift like that just may benefit everyone over the long term.

However, at the moment it looks like the Nasdaq-100 is pulling back a bit. So on this chart I've quickly mapped out some previous corrections over the last year. I am sharing my research openly just to hear what others think. One level I do find interesting is $313. That seems to be the last mini pullback low. Will it act as support? I may have to set an alert right there so I don't miss it. I've marked it for now with a yellow rectangle .

Markets, do move fast. Information was processed, and most tech stocks took off before many had a chance to realize what was going on. The Nasdaq-100 is the chart you see here. It is a collection of about 80 of the largest tech companies including some other non-tech companies to add diversification. It's a barometer for tech in today's market.

Also mapped out on this chart are previous corrections. One thing to keep in mind is that a 10% correction happens once per year, on average. Of course, yes, that is an average. But it's an important stat because 10% corrections are not out of the ordinary at all.
I work at TradingView helping to build charts, tools, and software for everyone interested in financial markets.

Twitter: https://twitter.com/scheplick
Blog: https://scheplick.com/

Comments

think 5th wave has one more high in the tank. TQQQ target achieved 95 now should go up but won't be a smooth ride. This is the daily chart and more of a longer-term trade. But I do believe we will see 121 at least before the next big downturn.
+3 Reply
@PETEYboy what will that equal for QQQ’s price
Reply
nailed it.
+2 Reply
scheplick Yogigolf
@Yogigolf, Wowza right off it. Have to be careful though. I always have to remind myself at least one 10% correction comes around each year.
Reply
Yogigolf scheplick
@scheplick, with the great end of day recovery it looks like the reversal could be in. Would be nice as I loaded up QQQ June calls when QQQ was around $315.
Reply
@Yogigolf June calls what strike ?
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My toughts are it will go between 308 and 303 and touch or approach the 100 MA. It will take a few more days but your analysis is reasonable
+2 Reply
this deserves a like nice work
+1 Reply
Thanks for sharing. I agree with the technical correction. I wonder how long this will last. Support levels below...
+1 Reply
chiefwils0n chiefwils0n
@chiefwils0n, I'm guessing we'll test S2, given that we're opening at the pivot today. Most indicators show that assets are oversold at this point.
Reply
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