QQQ Retracement Projection: Is $180 Realistic?

15 Mar 2022

QQQ is heavily weighted towards risk-on technologies.

Inflation is soaring, dovish Fed with loose monetary policies is not sustainable in the face of CPI/PPI/Commodities/etcetera reflecting an unhealthy market with price increases not seen in 40 years.

Previous significant correction benchmarks:
1. 2020 global pandemic from local high to bottom took 30 days with a -30% retracement. The recovery was limited in depth and and time due to fast stimulus response by government that has led to part of this inflation challenge
2. 2008 housing market bubble took 390 days to bottom out with approx 55% retracement
3. 2001 dot.com took 930 days to bottom with 84% retrace

Of note, the dot.com recovery for NASDAQ took 15 years and was supported by unfettered government quantitative easing.

The long-term channel bottom for QQQ aligns with the 55% correction level that took 390 days for the housing market.

QQQ Price Target at this level is approx. $180