Currently sitting on 2 trendlines from 2008/09 that form a wedge. A throwback here from the bottom TL would propel QQQ back into the channel shown and into IMO at least a .382 retrace of the current rally. It can still try again next week, but with SPY about 5 points away from 281 and major resistance, I dunno how many people are gonna wanna stick around for a...
The price action we've seen since October looks a lot like the tech bubble of Y2K. The combination of mean aversion and valuation levels like this have only occurred two times in the past(1929,2000). Corporate buy backs and excess leverage(everywhere) where also traits of these historical crashes.
Using the first tech bubble as a model, I've projected what...
The case for the bearish rising wedge strengthened today as a bearish hammer has now formed off of the upper channel of the rising wedge. This market has been very strong as of late but the overhead resistance, rising wedge, and now bearish hammer should not be discounted. I think risk is to the downside right now (higher probability) unless price as able to...
QQQ is a strong sell.
Thesis: QQQ has completed a 5 Wave Cycle and will now begin the correction phase. Big Tech is immensely overvalued here.
QQQ's chart has setup an irregular correction which occurs after a 5 Wave Cycle. Irregular Corrections have a phenomenon called 'Double Retracement'. The first retrace is the extension of the 5th Wave and the second is...
Volume trend suggesting upper TL shall resist and not be broken this time around.
-5MA, 10MA fail 50MA golden cross
-TL holds QQQ price
-NFLX doesn't break the bear mkt by itself on THU
-plenty of air below for bungee plunge.
-will grab a set of 2/15 QQQ 157p, looking for return of 15.00-25.00 per contract.
I see the move up from the Christmas low as an impulsive 5 wave up to complete an A of a potential X wave. Potential divergence is showing up on the larger time frame with reduction in volume.
This would be a good place to entry short position with a stop at the 887.
QQQ can go no further than $177.
Warning: 2015-2016 prices incoming
Correction will not be as deep as 2008, rather look sideways in comparison. 30%-50% downside from close. Worst risk reward I’ve ever seen (started in 2016)