Cautious Outlook as QQQ Tests Resistance

The QQQ showed mixed signals last week, closing at $609.65 after testing resistance around the $611-$614 level. While the index managed to recover from lows near $595, it faces significant technical hurdles with all key EMAs (5, 9, 20, and 50-day) converging in the $611-$618 range. This creates a strong resistance zone that must be convincingly broken for bullish momentum to continue.

The VIX's drop from 21.77 to 17.36 suggests decreasing fear, which typically supports equity prices. However, journal entries indicate concern about QQQ's ability to sustain gains above $618, with a break below $603 potentially signaling further downside toward $595.

Overall, the market appears to be at a technical inflection point. A clear break above $618 would signal strength, while failure below $603 could trigger a test of recent lows. Technology needs stronger participation, particularly in software, to validate a move toward new highs.

TICKER: QQQ

SOURCE: AI