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NDX 100 Eyes Historic Breakout Level

Published 03/11/2019, 02:45 PM
Updated 07/09/2023, 06:31 AM

Invesco QQQ Trust ETF

On the 20th-Anniversary of the very popular NDX 100 ETF (NASDAQ:QQQ), the ETF finds itself working on a what could be an important breakout level.

This monthly chart of QQQ applied Fibonacci extension levels to the 2000 highs/2002 lows at each (1). The rally off the 2002 lows saw it reach its 161% extension level last fall at (2), where it may have created a short-term high and then proceeded to fall nearly 20%.

The rally over the past 10 weeks has QQQ testing the underside of 10-year support as resistance for the first time in history.

The long-term bull trend should be seen as an important message about what QQQ does at this new test. The bull case for tech stocks wants and needs to see a breakout at (3) and then another breakout above the 161% extension level to keep the long-term uptrend in play.

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