Nasdaq 100 Falls Back Into A 5 Month Range
The bull case for the Nasdaq, specifically the powershares 100 $QQQ is looking worse and worse. Intraday so far on Friday, the QQQ is down over twice as much as the $SPY and $IWM on a percentage basis.
On Wednesday we wrote about the upper level failed breakout in the Nasdaq as a sign of near-term caution and now today, we’re seeing more evidence of sloppy price action and no respect for prior support.
With this move lower to close out the week and year, we now find ourselves back within a multi-month range we chopped around in since August.
We have short-term technical damage but the long term trend is still in tact here to the upside, we’ve simply lost that upper level bullish momentum.
I’m still keeping an eye out for a bounce in the market for reasons outlined yesterday in this article, but it wouldn’t be in the QQQs, I’d focus my attention on sectors and stocks showing relative strength.
I’ll have more info and analysis on that in our weekend market recap video.
Have a great weekend and Happy New Year!
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