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Nasdaq 100 Index ETF QQQ: At Technical Crossroads?
​October 25 2016 ( From TradingView )
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​​​​Financial assets like the SP500 Index (SPY ETF) had a very good ​​performance
​​indeed ​since bottoming out strongly post Brexit fears ​as even ​the Nasdaq 100 
​Index (QQQ ETF) ​joined the party; ​QQQ ETF ​is Outperforming the Mighty
​SPY ETF ​Tremendously since the beginning of July 2016...
​​Testing now the Resistance of a Tiny Steep Daily Rising Wedge for QQQ ETF;
​strong price compression​.   
​(See First Chart Below - Blue Trendlines)​

QQQ ETF is at +8.7% above the 200 DMA ​(Day Moving ​Average) as of the
​close of ​October 24 2016 and SPY ETF is only at +3.7% above it s 200 DMA.​


​​But few of us realize ​the ​outperformance of the Nasdaq ​100 
Index​ ​(QQQ ETF) ​compare to the Mighty SP500 Index (SPY ETF) on a relative basis since June 24 after testing a Major Support Trendline that started back since November 2008!. ​​(See Second Chart Below - Red Trendline - Ellipse) and now over previous peak. (yellow -ellipse)

​​​The market is tremendously in favor for the technology stocks over the broad stock market indices lately.
​As history repeat itself, we must be aware that this Support Trendline on a relative basis was a Major Test for Bulls back then for the Nasdaq 100 Index as it was tested on June 24 and rebounded very strongly since then. 

​(See Second Chart Below - Red Trendline - Ellipse)


What is quite interesting, is that on a relative basis, instead of the SP500 Index (SPY ETF), let s compare the QQQ ETF on a relative basis with the SP 100 Index (OEF ETF). Then we compare in those two indexes the top 100 stocks. What we have is a brand new high on a relative basis since March 2001 (ratio of QQQ vs OEF ETF).
​ 
​(See Third Chart Below - Weekly Chart - Ellipse)

What strikes me the most, ​​is at a time were relative volatility is on the low side, QQQ ETF is near making new highs price wise (mainly from Apple (11.14% of the QQQ) contribution up +27.8% since June 27 vs SPY ETF up only +7.7%) and is in the process of breaking a Monthly Major Resistance Trendline that started back since March 2000!. (See Fourth Chart Below - Red Trendline - Ellipse)

As the QQQ was a very strong performer lately and outperformed the Broad Market, I won t be surprise to see some profit taking for the end of the Month. As a few big tech names are reporting their earnings, expect volatility to pick up...

Nasdaq 100 Index ETF QQQ: At Technical Crossroads? $COMPQ  #Trading #nasdaq #investing #sp500 #aapl #stocks #risk

Financialiceberg.Com
Daily RATIO
Nasdaq 100 Index ETF ( QQQ )
over SP500 Index ETF ( SPY ) 
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​

Financialiceberg.Com
Weekly RATIO (Blue Line)
Nasdaq 100 Index ETF (QQQ)
over SP100 Index (OEF)
​4 WMA ( Weekly Moving Average - Yellow Line )​
12 WMA ( Weekly Moving Average - Red Line )​​
50 WMA ( Weekly Moving Average - Green Line )​


Financialiceberg.Com
Daily Chart ( Candles )
Nasdaq 100 Index ETF ( QQQ )
20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​​​


​Monthly Chart ( Candles )
Nasdaq 100 Index ETF ( QQQ )


Financialiceberg.Com