With all due notice that the market is in a long-term uptrend and remains bullish, the Nasdaq 100 (QQQ) continues to look vulnerable to short-term correction as we noted in NFTRH 455.
Yesterday and today it has been bobbing up against the SMA 50 but thus far not breaking through. The bounce has come from a logical support area, but we have been noting that a normal and healthy pullback would bring it to the gap at around 132 (the 5400s on NDX). Notice that the bounce has been on declining volume, which is not a bullish sign.
Shorter-term traders may want to take a look at this (or related leveraged ETFs, options, etc.) for a resumed pullback to the lower gap area. If trying the current setup, a strict stop loss can be used above the SMA 50, which is currently at 139.08. A more conservative play would be to wait to see if QQQ hits the red dotted trend line at 140.50, which would fill another gap. The stop loss on that would be a break of the trend line.
Other considerations: MACD and RSI are negative and the trend, per AROON, has turned down.
Again, it is a bullish market and shorting it has not been recommended for casual participants. This is only for short-term traders who understand the risks of shorting a bull market.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.
