The biggest tech ETF has been on a bungy cord for the last month and a half and we are starting to get signs of what the current wave of earnings will look like. Since the beginning of June we have been in a consolidation pattern, with one key characteristic. We have seen consistent lower highs with bottom support at the 685 level. In the last few days we have moved up off that double bottom signaling optimism from traders as the big tickers start to share some numbers. On this chart you can see the first bounce off 685 stayed above the 50 day moving average as did the next low at about 702. But the next couple drops pierced the 50 day and opened up some downward momentum. This is key as we set up a good trade. Take a look.

A move above 725 would break out of the downtrend and would light up some of the big money trading algos to turbo boost a renewed rally. We are going to watch closely as we see what the first couple big earnings show. If we see a bullish crossover on the MACD and a jump above that 725 mark, we could see another breakout from the consolidation like we saw in the beginning of April.

If you are looking for solid trade alerts to exploit the QQQ, take a look at Wendy Kirkland’s Merit Paycheck. She has been helping traders pull income from this ETF for years,

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily