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July 21 Chart of the Day - Invesco QQQ

Invesco QQQ is an exchange-traded fund (ETF) that tracks the Nasdaq-100 Index.

QQQ delivers exposure to companies that are at the forefront of transformative, long-term themes such as Augmented Reality, Cloud Computing, Big Data, Mobile Payments, Streaming Services, Electric Vehicles, and more.

Top 10 Holdings (by percentage of total holdings)

  1. Microsoft
  2. Apple
  3. NVIDIA
  4. Amazon
  5. Tesla
  6. Meta
  7. Alphabet Class A
  8. Alphabet Class C
  9. Broadcom
  10. Pepsi

Traders and investors have been riding this very bullish chart since October 2022 when price put in a definitive low at $254.26.  After some initial sideways action price initiated trend changing behaviors by making a series of higher highs and higher lows before rising above a proverbial "line in the sand" zone around $340.

From a price action technical analysis perspective, price continued its upward trajectory until running into a simple yet powerful trend line at the $388 level and has since pulled back.  First targets to the downside could be $370 but if that level doesn't hold then next stop down could be $355-$360 area.  Levels of interest below there would be $350 or back to the "line in the sand" $340 level for what could be a classic back test of the breakout levels.

Ultimately, if price rebounds at any of these levels providing a pull back long opportunity then the bulls could have their sights set on $390, $400+, or possibly new all time highs.

So what's next?

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

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2 comments

  • Nasdaq 100 Rebalancing, weighting of the heaviest weighted Stocks to be reduced, so the indexers, quadi indexers, etf’s, HGT’s, Arg firms, growth managers trying to mimic the indice, retail will be selling the heavier weighted ones, it should conclude by Friday. Generally the 19th to 25th day of the month is negative, looking for a possible swing trading bottom next week. Until then, just day trading. Thank you, Jeff

    Jeffrey Ling
  • Great work Tom. Appreciate it.

    Jeffrey Ling

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