1

NASDAQ-100 ETF: QQQ

March 12, 2020

I have also been asked to review QQQ so here is how I’m currently seeing this ETF. The QQQ ETF tracks the NASDAQ-100 index which a stock index made up of around 100 of the largest non-financial companies listed on the NASDAQ.

 

Technical Analysis: Please note that it is important to keep in mind that this analysis is Technical and chart-based but that any major Fundamental news items, as recently seen with Coronavirus, have the potential to quickly undermine identified chart patterns. This is why it is critical that traders appropriately manage their trade exposure and risk per trade.

 

QQQ monthly: the longer term Cupping pattern completed at 220 for a $100 gain:

 

QQQ monthly: Price action has been in an uptrend since the GFC and remains well above a longer (2009) and shorter (2015)-term support trend line. Any serious and deep pullback below these two trend lines though would bring 120 back into focus as this is near the previous breakout level and is also near the monthly chart’s 61.8% Fib level.

 

QQQ weekly: However, the trend is still UP for now as the index prints higher Highs and higher Lows:

 

QQQ weekly Cloud: Price action on the QQQ ETF has rarely dipped below the weekly Ichimoku Cloud since this post GFC uptrend started. Thus, watch for any potential new weekly chart close below the weekly Cloud:

 

QQQ daily: the 61.8% fib of the 2019-2020 swing high move is down near 180 so this will be the first major S/R level in focus if the selling continues. Note how this level has also been some decent S/R over recent years:

 

Summary: The pullback with the Coronavirus-related risk-off shift is minimal at this stage. The QQQ ETF remains above two long term support trend lines (since 2009 and 2015) and the weekly Ichimoku Cloud. However, the Coronavirus Pandemic remains a very fluid situation with a lot of news emerging throughout the day in Asia and so traders should watch for any further selling. The 61.8% fib level of the 2019-2020 swing High move is down near 180 and this will be the next lower level to watch for any new make or break.