NDX 100 Eyes Historic Breakout Level
Chris Kimble | Mar 11, 2019 02:45PM ET
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.
Get The News You Want
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.