Is Tech Topping? This Will Blow It Up

Is Tech Topping? This Will Blow It Up

Chris Kimble  | Feb 11, 2019 02:34PM ET

Weekly Invesco QQQ Trust

Is the popular Tech ETF QQQ forming a head-and-shoulders topping pattern? The odds are low, yet it's possible.

What would it take to eliminate the fact that this pattern is sending a bearish message to the tech sector? A strong rally at (1) would blow up the likelihood that tech is topping.

Below looks at the NDX 100 Advance/Decline Line:

Weekly Nasdaq 100 Advanec/Decline

The NDX adv-dec line did not break below the February lows, while the NDX 100 index did. That created a short-term bullish divergence.

Recently the A-D line is breaking out to new all-time highs at (2), which sends a positive message to the tech sector.

With the A-D line breaking to new highs, a rally at (1) in the top chart would greatly reduce the odds that an important topping pattern is in play. Tech bulls should keep a very close eye on what this key sector does in the next couple of weeks.

Chris Kimble

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+