QQQ has a major pump-up on hype from great earnings from AAPL, GOOG, and AMZN plus driver by META news they will be buying back stocks. QQQ gapped higher and continue the whole day driving up. Volume was huge, just a real one when capitulation is in progress. Just before the close market start to sell buy but retail traders came in in the last 3 weeks.
It's way overextended to the up and far away from all major MAs.
Volume did confirm the rise but could be capitulation volume, meaning the end of the leg.
RSI is extreme.
MACD is also extreme.
Overall: QQQ is in overbought territory and is due to pull back from its high. The pullback could be massive due to the very bad financial report of 3 major companies, AAPL, GOOG, and AMZN. GAP from September is closed and there is a high chance for QQQ to drop from here. The sell signal from a few days ago is staying for now.
It's way overextended to the up and far away from all major MAs.
Volume did confirm the rise but could be capitulation volume, meaning the end of the leg.
RSI is extreme.
MACD is also extreme.
Overall: QQQ is in overbought territory and is due to pull back from its high. The pullback could be massive due to the very bad financial report of 3 major companies, AAPL, GOOG, and AMZN. GAP from September is closed and there is a high chance for QQQ to drop from here. The sell signal from a few days ago is staying for now.
Comment:
306.73 was yesterday's low. If the market opens today below that and continues to drop it will be a very rare bearish reversal candle stick pattern called Bearish Abandoned baby which would indicate Monday would be nasty and the rest of the week.
Consistency is the key of success....