QQQ long term trend is down with short-term relief rally

11 Mar

I am guessing a bit more downside before we see a relief rally. The AI bubble is starting to unwind, and that falling knife is sharp. I am patiently waiting for some version of a short-term bottom. You can see in the chart that price is has several key support lines within near reach. I would expect testing and hopefully finding some support in the coming days. If it is like the COVID bubble unwind, then we could see a strong reverse rally out of this range. However, I think it is pretty clear QQQ is in correction with a convincing loss of the 200 day SMA.

13 Mar

Not

13 Mar

Not

Tomorrow could be a good day for a short-term bottom. Touched support today. I want a morning gap down like late July/August, and then a strong relief rally back to test 200 day. That would be great sign. Otherwise, its going to be touch and go if this is a short term bottom.